Tech climbed ahead of the broader market overnight, with Nasdaq futures rising 1.1% and the Dow/S&P 500 up 0.7%.
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***Written 8 pm Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication
Tuesday’s Session was Cycle Day 3 (CD3): Following an explosive start to the week as indexes hit all-time highs, price relinquished those gains and consolidated, finding buy response at prior week’s high zone between 3510 – 3520. Range was 56.25 handles on 2.126M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Normal for CD1 is a decline with the average measuring 3498. Three-fourths of the expected decline is in place as price closed with a firm bid in prior session. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3540, initially targets 3565 – 3575 zone.
2.) Price sustains an offer below 3540, initially targets 3510 – 3500 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3548 PVA Low Edge = 3530 Prior POC = 3540
Range Projections and Key Levels (ES) December 2020 (Z) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is trading higher and holding firm bid during overnight trade slightly above prior value zone. CD1 Average Decline has been fulfilled to 11603 and this cycle’s rally is underway. As such, there are two estimated scenarios to consider.
PVA High Edge = 11703 PVA Low Edge = 11585 Prior POC = 11631
Bull Scenario: IF Bulls sustain a bid above 11710, THEN initial upside estimate targets 11775 – 11815 zone.
Bear Scenario: IF Bears sustain an offer below 11710, THEN initial downside estimate targets 11670 – 11630 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.
Stay Focused…Non-Biased…Disciplined ALWAYS USE STOPS!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”
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