Following a big turnaround on Friday that resumed a selloff on Wall Street, markets went into another tailspin overnight as a Senate vote on a coronavirus rescue package failed to gain sufficient traction. Futures have now trimmed their losses, with the S&P 500 down 3.50% (as of this writing)
Source: Seeking Alpha https://seekingalpha.com/
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Price across indexes were locked LIMIT DOWN yet again as markets are bracing for sharp decline for RTH Open.
Today is a Cycle Day 3 (CD3)…Markets opened GLOBEX Session with a gap limit down (2174), jumped higher, then oscillated back n forth off limit level. Pre-RTH price is trading freely near 2215 level, but still below CD1 Low (2275).
Bull’s key objective for today is to recover CD1 Low (2275), to fulfill Positive 3 Day Cycle Statistic.
We’ll keep the “HIGH SURF WARNING FLAG” posted as volatility remains elevated, with VIX 72 and ATR (3) 236 handles.
****IMPORTANT >>> IF preset $risk parameters have been exceeded in your individual trade plan, THEN simply stand-aside or trade in simulation-mode until trade risk can properly be managed.
Please review the NYSE Circuit Breaker Rules in the section below.
Stock index futures in the U.S. plunged the 5% limit overnight, triggering limit-down rules, meaning only transactions at or above that threshold are allowed. Once the market opens, NYSE circuit breakers will work like this: trading halts for 15 minutes if the S&P 500 falls 7% at any time before 3:25 p.m. ET. Another 15-minute pause is triggered if losses reaches 13%. If the decline hits 20%, markets will close for the day
PVA High Edge = 2430 PVA Low Edge = 2340 Prior POC = 2375
Bull Scenario: IF Bulls hold bid above 2200, THEN initial upside estimate targets 2250- 2240 zone.
Bear Scenario: IF Bears hold offer below 2200, THEN initial downside estimate targets 2180 – 2175 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)… NQ opened GLOBEX Session with a gap limit down (6628.75), jumped higher, then oscillated back n forth off limit level. Pre-RTH price is trading freely near 6780 level, but still below CD1 Low (6874.25).
Bull’s key objective for today is to recover CD1 Low (6874.25), to fulfill Positive 3 Day Cycle Statistic.
PVA High Edge = 7468 PVA Low Edge = 7180 Prior POC = 7295
Bull Scenario: IF Bulls hold bid above 6750, THEN initial upside estimate targets 6840 – 6850 zone.
Bear Scenario: IF Bears hold offer below 6750, THEN initial downside estimate targets 6700 – 6650 zone.
Range Projections and Key Levels (NQ) June 2020 (M) 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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