In Europe, at midday, London -0.6%. Paris -0.3%. Frankfurt -0.2%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq flat. Crude -0.9% to $49.19. Gold +0.1% to $1265.20.
Ten-year Treasury Yield flat at 2.31%
(Source: Seeking Alpha)
8:30 Durable Goods
8:30 Initial Jobless Claims
8:30 International trade in goods
8:30 Retail Inventories
8:30 Wholesale Inventories
9:45 Bloomberg Consumer Comfort Index
10:00 Pending Home Sales
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
1:00 PM Results of $28B, 7-Year Note Auction
3:00 PM Farm Prices
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
S&P e-mini (ES) extended rally early in prior session but was unable to push higher later in day producing a failed double-top formation. As such, longs collectively looked for the exit as sell-down into the close balanced out the session.
Today is Cycle Day 1 (CD1)….Normal is for some magnitude decline with average measuring 2382 handle which has been key “over-under” marker. Violation and conversion of this level places pressure on the bulls to perform, giving bears an opening to push for lower levels.
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: June 2017 (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: Bulls will need to absorb any selling above 2382 handle and reconvert 2388 to upper support. IF successful, THEN retest of PH (2394.75) would be expected.
Scenario 2: Bears have an opportunity to push for lower levels with violation and conversion of 2382 handle. IF successful, THEN initial downside targets 2376, followed by 2372 YELL.
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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