S&P futures rise 0.7%, Nasdaq futures +0.9%, and the Dow pushes 0.8% higher. 10-year Treasury slips, pushing yield up almost 1 basis point to 0.64%. In Europe, the Stoxx Europe 600 Index rises 1.7%, U.K.’s FTSE 100 Index adds 1.6%, Germany’s DAX gains 2.1% and France’s CAC climbs 2.2%. In Asia, Hong Kong’s Hang Seng Index closed up 1.7%, Japan’s Nikkei 225 rose 0.3%, and the Shanghai Composite increased 0.2%.
S&P 500 (ES)
Prior Session was Cycle Day 3 (CD3): 3 Day Positive Cycle Statistics were fulfilled as price closed near high of day. Range of 39.50 handles and 1.123K contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Price is continuing its rally from last week as new all-time highs are seemingly becoming a daily event. During overnight and pre-RTH trade action price has fulfilled 3418 – 3421 CD1 target zone.
Price is currently trading well above prior value, so then we have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3412, initially targeting 3420 – 3425 zone.
2.) Price sustains an offer below 3412, initially targeting 3400 – 3395 zone.
P -VA High = 3390 P – VA Low = 3375 P – POC = 3386
Range Projections and Key Levels (ES) September 2020 (U) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price has fulfilled initial CD1 upside objective and is currently trading above prior value. As such we have two scenarios to consider for today’s trading.
P – VA High = 11561 P – VA Low = 11483 P – POC = 11537
Bull Scenario: IF Bulls hold bid above 11650, THEN initial upside estimate targets 11670 – 11675 zone.
Bear Scenario: IF Bears hold offer below 11650, THEN initial downside estimate targets 11625 – 11620 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
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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