U.S. stock futures drifted overnight, though equities are still set to end the quarter having erased most of the losses accrued in the first three months of the year.
Source: Seeking Alpha https://seekingalpha.com/
Prior Session was Cycle Day 3 (CD3): Price initially opened below CD1 Low during GLOBEX and historically when this occurs odds are favorable to recover back above during the session. Not only did price recover, but rallied throughout the day fulfilling Positive 3 Day Rally Statistic.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Normal for a CD1 is for some magnitude decline with average measuring 3024.50. Given prior sessions strength, any pullback may be shallow. Support zone is marked between 3028 – 3032.
1.) Price sustains a bid above 3028, initially targeting 3048 – 3058 zone.
2.) Price sustains an offer below 3028 initially targeting 3022 – 3018 zone.
P-VA High = 3037 P-VA Low = 3007 P-POC = 3028
Range Projections and Key Levels (ES) September 2020 (U) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is holding firm bid following prior session’s strong rally. This leads us to two scenarios to consider for today’s trading:
P-VA High = 9924 P-VA Low = 9826 P-POC = 9841
Bull Scenario: IF Bulls hold bid above 9955, THEN initial upside estimate targets 9985 – 10015 zone.
Bear Scenario: IF Bears hold offer below 9955, THEN initial downside estimate targets 9930 – 9900 zone.
Range Projections and Key Levels (NQ) September 2020 (U) 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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