Equity markets are looking to shift their focus back to corporate results, with Alcoa (NYSE:AA) kicking off the second-quarter earnings season after today’s closing bell. Yet even with the S&P 500 scraping up against a record high, triggered by Friday’s strong jobs report, some investors remain cautious in light of uncertainty about the Fed’s plan for rates, upcoming U.S. elections and ripple effects from the Brexit.
In Asia, Japan +4% to 15708. Hong Kong +1.5% to 20881. China +0.2% to 2994. India +1.8% to 27627.
In Europe, at midday, London +0.5%. Paris +0.7%. Frankfurt +1.1%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.5%. Crude -1.6% to $44.70. Gold +0.2% to $1360.40.
Ten-year Treasury Yield +1 bps to 1.37%
(Source: Seeking Alpha)
Markets have been gearing up recently for an assault on the yearly highs. Friday’s Employment Report was the needed spark to ignite the rally, as price vaulted higher and never looked back closing 2125.50 (SPX) new 2016 high.
Today in Cycle Day 2 (CD3)…Overnight trade has price marginally higher as residual momentum may continue before the next decline begins. Violation and conversion of PH (2125.50) would be initial sign of weakness.
Range Projections and Key Levels: Sept (U) Contract
HOD Range Projection: 2147.75; LOD Range Projection: 2105.25; CD3 Max Penetration Level: 2134.50; CD3 Max Violation Level: 2093.50; Cycle Day 1 Low: 2081.75; 3 Day Central Pivot: 2096.00; 3 Day Cycle Target: 2105.00; 10 Day Average True Range: 27.75
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (U) 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 converts PH (2125.50), THEN initial objective targets 2134.75 STATX Zone, followed by clear sky to 2147.74 HOD ATR Range Projection.
Scenario 2: Initial Sign of Weakness (SOW) would be violation and conversion of PH (2125.50). IF this occurs, THEN levels to be mindful of are 2116.00, 2111.25, 2106.50.
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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