European shares and U.S. stock futures were higher at the time of writing following a mixed day in Asia as investors stayed cautious amidst the deep summer vacation slumber and ahead of a speech by Fed Chair Janet Yellen on Friday at the annual central-bankers parley in Jackson Hole, where she may or may not signal when the Fed may or may not raise rates. Japan’s Nikkei closed +0.6%, apparently boosted by a fall in the yen versus the dollar.
In Asia, Japan +0.6% to 16597. Hong Kong -0.8% to 22821. China -0.5% to 9791. India +0.25% to 28060.
In Europe at midday, London -0.2%. Paris +0.5%. Frankfurt +0.4%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq +0.1%. Crude -1.6% to $47.32. Gold -0.3% to $1341.75.
Ten-year Treasury Yield flat at 1.55%.
(Source: Seeking Alpha)
7:00 MBA Mortgage Applications
9:00 FHFA House Price Index
10:00 Existing Home Sales
10:30 EIA Petroleum Inventories
11:30 Results of $13B, 2-Year FRN Auction
1:00 PM Results of $34B, 5-Year Note Auction
S&P e-mini (ES) edged higher in prior session to test last weeks high pivot (2190.50) before settling back at 2185 (breakout level). It will be key for bulls to convert 2186 to higher support in order to keep yesterday’s push intact.
Today is Cycle Day 2 (CD2)…In overnight trade price has pulled back to 3 Day Central Pivot (2181.75) and has found responsive buyers. Currently in pre-cash session price is trading @ 2186 handle. As stated, bulls will need to convert this level to higher support to keep rally which began in prior session going.
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: Bulls will need to keep price above 2181.75 and convert 2186 to higher support. IF this occurs, THEN initial objective is to retest 2190.50 SPOT. Conversion and upper targets are 2197.00 – 2200 zone.
Scenario 2: First Sign of Weakness (SOW) would be failure to hold 3D CPZ (2182.50 – 2181.00) as support. There have been multiple levels of buying response at lower levels, such as, 2179.25, 2177, 2172.25.
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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