The IMF is pressing the eurozone to let Greece skip paying interest or principal on bailout loans until 2040, WSJ reports, stating they should be fixed at an interest rate of 1.5%, and fall due gradually in the following decades, even as late as 2080. Eurozone governments, led by Germany, are reluctant to make such major concessions on their loans to Athens, which currently total over €200B, but they also want the IMF to rejoin the bailout as a lender to boost the program’s credibility.
In Asia, Japan +1.1% to 16653. Hong Kong +1.2% to 20119. China -0.3% to 2844. India +0.4% to 25774.
In Europe, at midday, London +0.6%. Paris +0.4%. Frankfurt +0.3%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq +0.2%. Crude +0.2% to $47.79. Gold -0.1% to $1272.60.
Ten-year Treasury Yield flat at 1.76%
Bulls came out in force in prior session, lead by Apple Computer, and disclosure that legendary investor Warren Buffet owns nearly $1B newly acquired shares. S&P rallied to reach 3 Day Average Cycle Target (2065.83). Recall in prior DTS Report 5.16.16, we stated…“Bulls will need to recapture and convert 2066.00 SPOT to solid support…” This still remains the case…So today will be important to notch a “follow-through” session…Otherwise, selling may re-enter the picture as the larger trend channel remains negative.
Today is Cycle Day 3 (CD3)…Cycle Targets have been achieved, so unless Bulls can keep positive momentum intact, the next decline can happen at any time. Key Support is marked at 2058 SPOT…Any violation of this level would be first sign of weakness. Convert 2066 – 2068 zone to upper support would be sign of strength.
Range Projections and Key Levels: June (M) Contract
HOD Range Projection: 2080.77; LOD Range Projection: 2048.73; CD3 Max Penetration Level: 2081.50; CD3 Max Violation Level: 2025.00; Cycle Day 1 Low: 2038.50; 3 Day Central Pivot: 2054.50; 3 Day Cycle Target: 2065.83; 10 Day Average True Range: 20.77
**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 can hold above key support (2058.00) and subsequently convert 2066.00 to upper support, THEN upside is open to 2071.75 – 2075.75 STATX Zone…Range Targets measure 2080 – 2081.50 zone.
Scenario 2: Failure to convert 2066.00 to support with violation and conversion of 2058.00 to resistance opens door for sellers to push back buyers. Lower levels of interest for renewed buy response are: 2058..2054…2052. Below is ATR Range Projection 2048.73. Violation of Cycle Day 1 Low (2038.50) increase odds for forced long liquidation.
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
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