Stocks across the globe are lit up green as a dovish tone from Janet Yellen cooled near-term U.S. rate hike bets and WTI came closer to $50 a barrel. At yesterday’s speech in Philadelphia, the Fed chief called the recent U.S. jobs numbers “concerning” and omitted her last message that rates could rise again “in the coming months,” but warned against attaching too much significance to the payrolls data in isolation. Bye-bye summer rate hike?
In Asia, Japan +0.6% to 16675. Hong Kong +1.4% to 21328. China +0.1% to 2936. India +0.9% to 27010.
In Europe, at midday, London +0.4%. Paris +1.2%. Frankfurt +1.7%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.4%. Crude +0.5% to $49.95. Gold -0.3% to $1244.10.
Ten-year Treasury Yield +1 bps to 1.73%
(Source: Seeking Alpha)
S&P e-mini (ES) held 2095 key support outlined in prior DTS Briefing 6.6.16, as price continued this cycle rally up to and exceeding 2109.50 Average Cycle Rally Target. In overnight trade price has extended the rally to 2114.25 – 2116.25 Statistical Extreme Zone.
Today is Cycle Day 3 (CD3)…This Cycle’s upside objectives have been met, so residual bullish momentum could certainly continue to push higher or pullback/decline could begin at any time. First Sign of Weakness (SOW) would be trading back below and converting CD2 High (2112.25).
Range Projections and Key Levels: June (M) Contract
HOD Range Projection: 2122.25; LOD Range Projection: 2100.50; CD3 Max Penetration Level: 2120.75; CD3 Max Violation Level: 2090.50; Cycle Day 1 Low: 2082.75; 3 Day Central Pivot: 2099.50; 3 Day Cycle Target: 2109.50; 10 Day Average True Range: 15.73
**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 clears and converts PH (2112.25), THEN initial upside objective measures 2114.25 – 2116.25 STATX Zone. Above this zone measures 2120.75 CD3 Maximum Penetration Level…ATR Range Projection is 2122.25.
Scenario 2: Price is currently above PH (2112.25)…Violation and conversion back below this level would be SOW, indicating that a potentially deeper decline may unfold. Levels to be mindful of for potential renewed buy response are: 2105.00 – 2103.50 Central Pivot Zone, followed by 2100 Roundie.
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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