It looks like the bulls have gained the upper hand in the U.S. stock market, with shares advancing for their third straight week in a row, following an impressive jobs report on Friday that showed recent economic worries were overblown. The S&P 500 has now gained in 10 out of 15 sessions since its Feb. 11 low, and closed last week above its 100-day moving average for first time in 2016. But the question remains – where will equities go from here? Further gains are possible if the ECB expands its stimulus measures this week, but more upbeat U.S. data could bolster prospects for an upcoming rate hike from the Fed and weigh on shares.
In Asia, Japan -0.6% to 16911. Hong Kong -0.1% to 20159. China +0.8% to 2897. India closed.
In Europe, at midday, London -1%. Paris -1%. Frankfurt -1%.
Futures at 6:20, Dow -0.3%. S&P -0.4%. Nasdaq -0.5%. Crude +1.4% to $36.43. Gold +0.1% to $1271.60.
Ten-year Treasury Yield +2 bps to 1.90%
(Source: Seeking Alpha)
10:00 Labor market condition index
12:30 PM TD Ameritrade IMX
3:00 PM Consumer Credit
Range Projections and Key Levels:
HOD Range Projection = 2012.98; LOD Range Projection = 1968.52; CD1 Maximum Penetration Level = 2025.31; CD1 Maximum Violation Level = 1952.72; Cycle Day 1 Low = 1966.25; 3 Day Central Pivot = 1986.50; 3 Day Cycle Target = 2005.94; 10 Day Average True Range = 27.73.
**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: IF price holds 1986.50 3 Day Central Pivot THEN converts 1996.00 SPOT, price has potential to retest 2007.50 prior high.
Scenario 2: Failure to convert 1996.00 SPOT and subsequent violation of 1986.50 opens door to deeper decline / pullback to probe of new secure low. Levels to be mindful of for possible support are: 1984, 1980 – 1975 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.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS