Business activity in the eurozone did not fall as much as expected in July, despite Brexit jitters and the Bastille Day massacre, as Markit’s flash PMI for the region dropped to 52.9 from June’s 53.1. But sterling fell 1% to $1.3104 after the British economy shrank at its steepest pace since early 2009, with the flash U.K. composite PMI falling to 47.7 from 52.4. “At this level, the survey is signaling a 0.4% contraction of the [U.K.] economy in Q3,” said Chris Williamson, chief economist at Markit.
In Asia, Japan -1.1% to 16627. Hong Kong -0.2% to 21964. China -0.9% to 3013. India +0.3% to 27803.
In Europe, at midday, London +0.5%. Paris +0.2%. Frankfurt -0.1%.
Futures at 6:20, Dow +0.2%. S&P +0.2%. Nasdaq +0.2%. Crude +0.2% to $44.83. Gold -0.5% to $1325.70.
Ten-year Treasury Yield +1 bps to 1.57%
(Source: Seeking Alpha)
Today is Cycle Day 3 (CD3)…Price is currently trading above CD1 Low (2155.25). Larger uptrend remains intact, though short-term consolidation continues to have reduced ranges and lower volumes. In other words, typical summertime trade. The current high/low range is marked between 2172 – 2152 handles.
Range Projections and Key Levels: Sept (U) Contract
**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 holds above CD1 Low (2155.25), THEN will mark positive 3 Day Cycle. Bulls objective will be to absorb any selling and force a push above 2172 handle.
Scenario 2: IF bears can force selling below key support (2152), low projections measure 2148 down to 2143 handles.
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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