More cries for a March rate hike may be heard today as investors shift their attention to Janet Yellen, who will speak at 1 p.m. ET at the Executives’ Club of Chicago. Market expectations for an increase are already through the roof, but there is chatter that Yellen may try and give herself some wiggle room in case next Friday’s jobs report comes out weak. It’ll be the last big Fed speech before the March 14-15 policy meeting.
In Asia, Japan -0.5%. Hong Kong -0.7%. China -0.3%. India flat.
In Europe, at midday, London -0.2%. Paris +0.5%. Frankfurt -0.1%.
Futures at 6:20, Dow flat. S&P -0.1%. Nasdaq -0.1%. Crude +0.3% to $52.79. Gold -0.4% to $1227.50.
Ten-year Treasury Yield flat at 2.5%
(Source: Seeking Alpha)
9:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
10:15 Fed’s Evans and Lacker at Monetary Policy Forum
1:00 PM Baker-Hughes Rig Count
1:00 PM Janet Yellen speech
1:00 PM Stanley Fischer speech
Finally Cycle Day 1 (CD1) produced a “normal decline” reaching downside target zone outlined in Scenario 2 of prior DTS Briefing 3.2.17. As stated: “ IF price violates and converts 2385.50 Central Pivot, THE this would be initial sign of weakness, targeting 2380, followed by 2373 – 2370.50 3 Day Central Pivot Zone.”
Today is Cycle Day 2 (CD2)…Current swing is down and momentum may push price a bit lower before the next rally begins. We will be anticipating a renewed buy response within 2373 – 2370 zone and stabilization. Careful monitoring of this zone will be critical whether a deeper corrective move is to unfold.
Range Projections and Key Levels
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: March 2017 (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 clear and convert 2382 handle to shift the current down swing…IF this occurs, THEN initial target is 2386 SPOT.
Scenario 2: Bears will need to hold below 2382 handle and push for a break below 2373 – 2370 zone to continue to force selling. Downside measures 2268…2358 zone.
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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