The Bank of England looks set to keep interest rates on hold today amid concerns about a slowdown in the U.K. economy and the threat of Britain leaving the EU. “Little action is expected as always with no one voting for either a cut or a hike,” said Mic Mills, Head of Client Services at Capital Index. The BoE will reveal its rate decision and minutes at 7:00 a.m. ET.
In Asia, Japan +3.2% to 16911. Hong Kong +0.9% to 21338. China +0.5% to 3082. India +1.9% to 25627.
In Europe, at midday, London flat. Paris +0.3%. Frankfurt flat.
Futures at 6:20, Dow -0.1%. S&P -0.1%. Nasdaq -0.1%. Crude flat at $41.75. Gold -0.6% to $1241.40.
Ten-year Treasury Yield +1 bps to 1.77%
(Source: Seeking Alpha)
8:30 Consumer Price Index
9:45 Bloomberg Consumer Comfort Index
10:30 EIA Natural Gas Inventory
1:00 PM Results of $12B, 30-Year Note Auction
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
E-mini Indices continued their rally to reach 3 Day Cycle Targets and Average True Range (10) HOD Range Projections. This recent Cycle has been textbook perfect as both high and low cycle range parameters have been achieved. The Power of the 3 Day Cycle.
Today is Cycle Day 1 (CD1)…NORMAL SPILL DOWN…Typically we would be anticipating a decline on CD1, though we cannot rule out continued upside strength to higher levels, as this Cycle is displaying very strong Market Internals. Any decline may be be relatively shallow as Mutual Funds continue on their buying spree on any price dips.
Range Projections and Key Levels: June (M) Contract
HOD Range Projection = 2094.30; LOD Range Projection = 2053.70; CD1 Maximum Penetration Level = 2087.88; CD1 Maximum Violation Level = 2035.84; Cycle Day 1 Low = 2032.50; 3 Day Central Pivot = 2052.50; 3 Day Cycle Target = 2072.47; 10 Day Average True Range = 22.80.
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: June (M) 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 clears and converts PH (2077.00), THEN expansion targets 2080.50 – 2083.25 STATX Zone. Above this zone measures 2087.08 CD1 Max Penetration Level.
Scenario 2: First Sign of Weakness (SOW) would be violation and conversion of 2069.00 Central Pivot. IF this occurs THEN initial objective would be to test 2065.50 for renewed buy response. Failure for buyers to emerge opens door for deeper decline targeting 2060 – 2058 zone, followed by 2054.75 – 2051.25 3D CPZ and LOD Range Projection. Average Decline on CD1 measures 2046.55.
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