Markets
A sharp rally on Thursday saw the Dow climb for a third straight session, recording a 21% surge that put the index back in bull territory.
A pullback was seen overnight as Dow futures slid 575 points, while S&P 500 and Nasdaq futures fell 2.5%.
Source: Seeking Alpha https://seekingalpha.com/
Economic Calendar https://www.investing.com/economic-calendar/
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
S&P 500
Prior Session was Cycle Day 3 (CD3)…Price fulfilled Positive 3 Day Cycle Statistics as steady buying pushed price higher surpassing CD2 Penetration Target Zone.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into today’s Cycle Day 1 (CD1)…Normal expectation for CD1 is a decline, with Average measuring 2526.75. Overnight trade has price declining, fulfilling objective CD1 target and also below prior value zone.
Below are some Trading Room observational posts from prior session:
New: PTG Trading Room Chat Log’s Link
PTGDavid :(1:46:05 PM) : Note: There remains potential to take out current HOD and push…Market on Close could be catalyst…
PTGDavid :(1:48:21 PM) : ***This Cycle has unfolded quite nicely…Support levels and Cycle Range Projections have been textbook
PTGDavid :(2:58:44 PM) : Flat Tops are “Poor Highs”.>>>Typically portends a breakout higher
Marlin : (3:50:28 PM) : $4.7B buy MOC
PTGDavid :(3:59:17 PM) : Beautiful way to end this Bullish Cycle Sequence
Markets are currently trading in negative territory pre-RTH
We’ll keep the “High Surf Warning” posted for the foreseeable future.
P-VA High = 2588 P-VA Low = 2545 P-POC = 2570
Bull Scenario: IF Bulls hold bid above 2525, THEN initial upside estimate targets 2568 – 2585 zone
Bear Scenario: IF Bears hold offer below 2525, THEN initial downside estimate targets 2487 – 2465 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 2713.00; LOD ATR Range Projection: 2453.00; 3 Day Central Pivot: 2465.00; 3 Day Cycle Target: 2635.00; 10 Day Average True Range 182.00; VIX: 68.00
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is approaching 7600 CD1 Average Decline level during pre-RTH opening. as price is below prior value zone.
P-VA High = 7768 P-VA Low = 7648 P-POC = 7716
Bull Scenario: IF Bulls hold bid above 7600, THEN initial upside estimate targets 7700 – 7750 zone.
Bear Scenario: IF Bears hold offer below 7600, THEN initial downside estimate targets 7534 – 7485 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 8068.00; LOD ATR Range Projection: 7450.00; 3 Day Central Pivot: 7534.00; 3 Day Cycle Target: 7830.00; 10 Day Average True Range: 503.00; VIX: 68.00
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!
Good Trading…David
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
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