Traders this morning could get a clue about the big employment report coming on Friday – and get a good idea of how sure the case is for an interest rate hike next week. The ADP National Employment report is scheduled for release at 8:15 a.m. ET and should show creation of 190,000 private payrolls in February. In January, the private sector added a surprisingly high 246,000 jobs.
In Asia, Japan -0.5%. Hong Kong +0.4%. China flat. India -0.3%.
In Europe, at midday, London -0.2%. Paris -0.2%. Frankfurt -0.1%.
Futures at 6:20, Dow -0.1%. S&P -0.1%. Nasdaq -0.1%. Crude -0.9% to $52.65. Gold -0.2% to $1214.10.
Ten-year Treasury Yield +3 bps to 2.54%
(Source: Seeking Alpha)
S&P 500 e-mini (ES) is in a confirmed corrective pullback measured by two-sequential shifts in the 3 Day Central Pivot Zone, which is currently between 2378 – 2380. This zone becomes “key resistance” on any future attempt to rally.
Today is Cycle Day 2 (CD2)…The decline which began normally on CD1 continues into the overnight reaching 2361 handle which is projected downside target. Any further erosion measures 2357 down to 2352.50.
Note: Contract Rollover to June (M) begins Thursday.
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: Bulls will need to hold price above 2361…Clear and convert 2368 – 70 to support to any additional downside. IF successful, THEN next objective is to convert 2376 to new upper support.
Scenario 2: Bears have their opening to continue to press for lower prices with range targets measuring 2353- 2351 STATX 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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