In Europe, at midday, London +0.1%. Paris -0.5%. Frankfurt -0.4%.
Futures at 6:20, Dow +0.2%. S&P flat. Nasdaq -0.4%. Crude -0.5% to $57.20. Gold +0.1% to $1278.60. Bitcoin +0.5% to $11676.
Ten-year Treasury Yield flat at 2.38%
S&P 500 (ES)
Today is Cycle Day 3 (CD3)…Morning gap higher with late day reversal sets up a bearish tone entering into today’s session. Bears have an opening to push lower as weakness in technology stocks is beginning to weight on S&P. Should price convert 2625 range low, then lower price can be expected. Bullish case will be for bulls to recover 2625 handle.
Nasdaq 100 (NQ)
NAZ was weak link in prior session as the rotation out of technology stocks regains momentum. Violation and conversion of CD1 Low (6246) opens door to deeper decline measuring 6231.61, followed by 6227 – 6224 zone with 6215 deep violation extreme. Bulls must recover 6279 handle.
Range Projections and Key Levels (ES)
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: December 2017 (ESZ) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.
Scenario 1: Bulls must hold above PL (2633.75) and recover 2645 handle. IF successful, THEN recovery targets 2650, followed by 2654 handle.
Scenario 2: Bears must violate and convert PL (2633.75) to lower resistance to force selling targeting 2630, followed by 2625 range low.
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.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone.
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