Following steep losses throughout the night, U.S. stock index futures are see-sawing between positive and negative territory, while the global selloff continues in Europe and Asia. The DJIA posted its largest-ever, single-day point decline yesterday, while the S&P 500 erased its gains for the year.
In Asia, Japan -4.8%. Hong Kong -5.1%. China -3.4%. India -1.6%.
In Europe, at midday, London -2.4%. Paris -2.2%. Frankfurt -2.1%.
Futures at 6:20, Dow -0.3%. S&P +0.5%. Nasdaq +0.8%. Crude -0.5% to $63.81. Gold +0.8% to $1346.10. Bitcoin -8.6% to $6320.
Ten-year Treasury Yield -8 bps to 2.7%
S&P 500 (ES)
Today is Cycle Day 1 (CD1)…***Current Cycle has been disrupted because of the explosion of volatility as VIX hit 50.30 in overnight trade. Markets are in turmoil and will take some time to stabilize. Average True Range (3) is currently 86 which is 5.5 times the norm.
Scenario 1: Bulls will need to convert 2616 to support for relief rally above 2645.00…Upside targets 2660…2676…2690 levels.
Scenario 2: Bears need to hold below 2587…Downside targets 2558…2540…2530…2515…2498…2485.
HOD ATR Range Projection: 2615.00; LOD ATR Range Projection: 2558.50; Cycle Day 1 Low: 2823.50; 3 Day Central Pivot: 2754.75; 3 Day Cycle Target: 2841.29; 10 Day Average True Range (3) 86.00 ; VIX: 49.00
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Current overnight range is 6539.25 – 6220.50…Average True Range (3) is currently 218 which is 5 times the norm.
Scenario 1: Bulls need to hold above 6400 and convert 6490 to support for a relief rally above 6540, then targeting 6577…6615…6550
Scenario 2: Bear need to hold below 6400 and convert 6330 to resistance, then targeting 6260.25…6223…6185…6154.
Range Projections and Key Levels (NQ)
HOD ATR Range Projection: 6478.25; LOD ATR Range Projection: 6321.00; Cycle Day 1 Low: 6884.75; 3 Day Central Pivot: 6771.75; 3 Day Cycle Target: 6973.75; 10 Day Average True Range (3): 218.00; VIX: 49.21
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.”
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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