Traders will fixate on a wave of U.S. economic data this week, crested by payrolls data on Friday that could sway expectations about the timing of a future interest rate hike and spark volatility in record-high stock prices. On Friday, Fed Chair Janet Yellen said the case for a rate hike was strengthening, but left open the timing of what would be the first increase since December 2015. Other upcoming data will detail personal consumption, consumer confidence, car sales and factory activity.
In Asia, Japan +2.3% to 16737. Hong Kong -0.4% to 22821. China flat at 3070. India +0.4% to 27902.
In Europe, at midday, London closed. Paris -1%. Frankfurt -0.8%.
Futures at 6:20, Dow flat. S&P flat. Nasdaq flat. Crude -1.5% to $46.95. Gold -0.2% to $1323.30.
Ten-year Treasury Yield -1 bps to 1.61%
(Source: Seeking Alpha)
Push Higher…Push Lower…Price gyrated Friday as timing of (if) interest rate increase remains unclear. With low volumes and participation at a crawl as we enter last vacation week of summertime, most will be focusing on Employment Report this week.
Today is Cycle Day 2 (CD2)…Price declined to just above 2156.25 Average Decline on CD1 during prior session before reversing 10 handles by settlement. The current bounce occurred in ragged fashion, so today could be a bit choppy as price works to find its natural balance zone.
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.
*****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 fend off any additional selling above CD1 Low (2157.50) and convert 2173.50 to new support.
Scenario 2: Bears need a follow-through day keeping price below 2173.50 handle and forcing a retest of CD1 Low (2157.50).
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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