With the Fed still divided over its next move, investors will be looking to the ECB today for some clarity. The central bank will release minutes of its July policy meeting at 8:30 a.m. ET, which should offer clues on how it expects the Brexit vote to affect the eurozone and the extent to which officials are worrying about regional banking problems. Other details might suggest how the ECB would react to any Brexit-related economic fallout.
In Asia, Japan -1.6% to 16486. Hong Kong +1% to 23023. China -0.2% to 3104. India +0.4% to 28123.
In Europe, at midday, London flat. Paris +0.1%. Frankfurt +0.5%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq -0.1%. Crude +0.3% to $47.64. Gold +0.4% to $1354.50.
Ten-year Treasury Yield -1 bps to 1.55%
(Source: Seeking Alpha)
8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
9:45 Bloomberg Consumer Comfort Index
10:00 Fed’s Dudley Speech
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
4:00 PM Fed’s Williams: Economic Outlook
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
Cycle High (2090) which was established on CD1 where the decline began continued into both CD2 and CD3 in prior sessions testing 2168 key support marker. Subsequent bounce has reached back above 2180.50 prior Cycle Low as objective in overnight trade session.
Today begins new Cycle Day 1 (CD1)…Normal is for decline to develop…Current trade structure is supportive of this decline scenario today, as long as 2185 handle is NOT converted. Downside has potential to retest 2165.50 prior low.
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: Bullish case needs to have price hold above 2173 handle…Should this occur, upside objective is to convert 2183 – 2185 zone to support.
Scenario 2: Bearish case keeps selling pressure below 2183 handle…Further conversion of 2173 handle to lower resistance increases pressure on bulls to respond. Failure to respond adequately opens door to retest prior lows.
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.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
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