U.S. stock index futures are up by 1.2%, but with yields on U.S. 10-year Treasury paper touching a four-year top of 2.885%, it’s too early to sound an all-clear on volatility. Another upcoming challenge will be the release of U.S. consumer price data on Wednesday – given that it was fears of faster inflation, and thus more aggressive rate rises, that triggered the global rout in the first place.
In Asia, Japan -2.3%. Hong Kong -0.2%. China +0.8%. India +0.9%.
In Europe, at midday, London +1.1%. Paris +1.3%. Frankfurt +1.5%.
Futures at 6:20, Dow +1.2%. S&P +1.2%. Nasdaq +1.2%. Crude +1.7% to $60.20. Gold +0.5% to $1322.10. Bitcoin +7.2% to $8651.
Ten-year Treasury Yield +5 bps to 2.88%
2:00 PM Treasury Budget
S&P 500 (ES)
Today is Cycle Day 2 (CD2)…Rally which began in prior session continues in overnight trade as price is higher by 30 handles fulfilling CD2 average penetration target of 2650. Bulls will need to continue pushing above this level for further upside expansion.
Scenario 1: IF price converts PH (2637.75), THEN initial target measures 2650, followed by 2660 – 2668 zone.
Scenario 2: IF price violates PH (2637.50), THEN initial target measures PC 2621.50.
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price continuing to rally in overnight trade fulfilling CD2 Penetration Level (6498.00. Bulls will need convert this level to support to expand the rally targeting 6580 – 6600 zone.
Scenario 1: IF price converts PH (6455.50), THEN initial upside measures 6474 – 6498 CD2 penetration zone.
Scenario 2: IF price violates PH (6455.50), THEN initial downside targets PC (6425.75)…Failure to secure support opens door to deeper downside targeting 6330 VPOC zone.
Range Projections and Key Levels (NQ)
HOD ATR Range Projection: 6615.30; LOD ATR Range Projection: 6297.50; Cycle Day 1 Low: 6164.00; 3 Day Central Pivot: 6455.25; 3 Day Cycle Target: 6259.00; 10 Day Average True Range: 201.05; VIX: 26.21
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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