U.S. stock futures follow most global markets in indicating a higher open, as today’s conclusion of the Federal Reserve policy meeting is expected to keep the benchmark interest rate near zero and maintain strong support for business during the COVID-19 pandemic.
Source: Seeking Alpha https://seekingalpha.com/
Stock futures are positive by 1.0% during overnight trade action
Crude oil prices could be on the rebound, as June WTI crude futures rose 14% overnight after the American Petroleum Institute revealed a 10 million barrel increase in crude inventories in the latest weekly data, below the prior week’s 13.2 million barrel build and short of analyst expectations.
Goldman Sachs is out with a report highlighting a number of reasons why it is more positive on energy stocks, saying demand appears to be near a trough, shut-in announcements are becoming material and valuation is near 25-year lows by some measures.
8:30 GDP Q1
10:00 Pending Home Sales
10:00 State Street Investor Confidence Index
10:30 EIA Petroleum Inventories
11:00 Survey of Business Uncertainty
2:00 PM FOMC Announcement
2:00 PM Chairman Press Conference
***New: PTG Trading Room Chat Log’s Link
Prior Session was Cycle Day 1 (CD1): Following early strength that took price to initial upside targets (2908 – 2912) fell apart as normal CD1 declined, testing the key support zone between 2850 – 2855, settling at 2860.50. We’ve marked 2850 as a key 2-day Line-In-Sand (LIS).
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Having closed low within the range, we have two scenarios: 1.) Violation of CD1 Low (2851), extending, targeting CD2 Violation Level (2836.50). 2.) Price holds CD1 Low (2851), pushing higher on the recovery rally targeting 2904 – 2909 zone.which represents 2x historical CD2 range.
P – VA High = 2885 P – VA Low = 2853 P – POC = 2873
Bull Scenario: IF Bulls hold bid above 2851, THEN initial upside estimate targets 2904 – 2909 zone
Bear Scenario: IF Bears hold offer below 2851, THEN initial downside estimate targets 2845 – 2836 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price has rallied off CD1 Low (8654.50) retracing three-fourths of prior day’s range following positive Alphabet’s (GOOGL) earnings. Currently at 5-day POC (8830), CD2 is expected to have a wide trading range.
P – VA High = 8830 P – VA Low = 8676 P – POC = 8715
Bull Scenario: IF Bulls hold bid above 8698, THEN initial upside estimate targets 8815 – 8830 zone.
Bear Scenario: IF Bears hold offer below 8698, THEN initial downside estimate targets 8618 – 8596 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
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