In Europe, at midday, London -1.9%. Paris -2.5%. Frankfurt -2.7%.
Futures at 6:20, Dow -1.3%. S&P -1.3%. Nasdaq -1.8%. Crude -2.6% to $30.10. Gold +1.5% to $1175.40.
Ten-year Treasury Yield -2 bps to 1.82%
10:00 Labor market condition index
12:30 PM TD Ameritrade IMX
Friday was a textbook Cycle Day 1 (CD1) NORMAL SPILL DOWN…Selling straight of of the opening gate never subsided as trend day developed early setting the negative bias for the session. In overnight trade price has violated the key 1865.75 low and range has expanded down to today’s LOD Projection at 1847.28, which is 100% of the 10-day Average True Range (37.22).
Today is Cycle Day 2 (CD2)…NEUTRAL SPILL..Bull camp has lots of work to do reverse current sentiment…Path of least resistance appears to be down as market internals continue to deteriorate with bell weather stocks falling down like bowling pins.
Range Projections and Key Levels:
HOD Range Projection = 1883.22; LOD Range Projection = 1847.28; CD2 Maximum Violation Level = 1843.75; Cycle Day 1 Low = 1865.75; 3 Day Central Pivot = 1895.00; 3 Day Cycle Target = 1900.00.
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: March 2016 (H) 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: Price will need to hold at or above 1847.28, then clear and convert 1860.50 for bulls to stage a reversal rally…Getting back above CD1 Low (1865.75) is a necessary objective for bulls to stop the current negative sentiment.
Scenario 2: Price has already reached LOD Range Projection of 1847.28 combined with CD2 Maximum Violation Level of 1843.75. Further deterioration below this zone ushers in long-liquidation and margin selling. Levels to be mindful below this zone are: 1842.25; 1837.25; 1824.25; 1822.75.
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