Volatility is returning to the markets as U.S. stock futures climbed 2% overnight following Wall Street’s rocky start to the second quarter. It comes ahead of this morning’s closely-watched jobless claims report, which is likely to reinforce views that the longest employment boom in U.S. history ended in March.
Source: Seeking Alpha https://seekingalpha.com/
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Wednesday’s Session was Cycle Day 1…Price decline which is normally expected on a CD1 did materialize, pushing price down to and slightly beyond 2452 Statistical Extreme. Cycle Day 1 Low (2434.25) is in-place.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into today’s Cycle Day 2…During GLOBEX Session price has rallied approximately 50% of target (2519.50) from the CD1 Low (2434.25). Normal for a CD2 is for some “back n fill” price action, adjusting for prior decline. Part of this process would be to re-test the CD1 Low (2434.25) for surety.
P – VA High = 2488 P – VA Low = 2452 P – POC = 2470
Bull Scenario: IF Bulls hold bid above 2475, THEN initial upside estimate targets 2500 – 2510 zone
Bear Scenario: IF Bears hold offer below 2475, THEN initial downside estimate targets 2470 – 2460 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Has rallied off CD1 Low (7404.25) and approximately 50% of expected range target of 7687.50. Normal for CD2 is for some “back n fill” price action holding above prior close (7463.50).
P – VA High = 7640 P – VA Low = 7500 P – POC = 7514
Bull Scenario: IF Bulls hold bid above 7530, THEN initial upside estimate targets 7575 – 7600 zone.
Bear Scenario: IF Bears hold offer below 7530, THEN initial downside estimate targets 7485 – 7460 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
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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