Markets
U.S. stock index futures are trading cautiously after snapping a five-day winning streak in the previous session amid the latest uncertainty surrounding the coronavirus pandemic: Dow -0.2%; S&P -0.1%; Nasdaq +0.1%.
Source: Seeking Alpha https://seekingalpha.com/
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
10:30 EIA Petroleum Inventories
12:15 PM Fed’s Bostic: “Federal Reserve’s Response to COVID-19”
1:00 PM Results of $29B, 10-Year Note Auction
3:00 PM Consumer Credit
Source: https://www.investing.com/economic-calendar/
Source: https://www.investing.com/economic-calendar/eia-crude-oil-inventories-75
S&P 500 (ES)
***Written 7 pm Tuesday evening for Wednesday’s trading and contribution to Mr. TopStep’s Opening Print Publication.
Tuesday’s Session was Cycle Day 3 (CD3): Overnight rally during Asian Session fulfilled upside targets, but throughout the RTH Session selling pressure mounted, pressing price to lows of the session at end of day.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Part of the CD1 Average Decline (75 handles) is in-place with previous session’s sell-off. We then have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3133, initially targeting 3148 – 3158 zone.
2.) Price sustains an offer below 3133 initially targeting 3120 – 3108 zone.
P -VA High = 3168 P – VA Low = 3148 P – POC = 3168
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3188; LOD ATR Range Projection: 3127; 3 Day Central Pivot: 3142; 10 Day Average True Range 56; VIX: 29
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price is consolidating at lower end of prior session’s range. Today we have two scenarios to consider:
P – VA High = 10670 P – VA Low = 10570 P – POC = 10612
Bull Scenario: IF Bulls hold bid above 10505, THEN initial upside estimate targets 10570 – 10595 zone.
Bear Scenario: IF Bears hold offer below 10505, THEN initial downside estimate targets 10480 – 10465 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 10174; LOD ATR Range Projection: 10486; 3 Day Central Pivot: 10478; 10 Day Average True Range: 208; VIX: 29
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!
Good Trading…David
“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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