U.S. futures are heading higher as traders focus on the upcoming policy announcements from the Federal Reserve and Bank of Japan. While the Fed is widely anticipated to leave interest rates unchanged, expectations for the BOJ are more mixed, with investors split on whether it will cut rates further into negative territory, alter its bond purchase program or signal a shift in monetary policy. Both decisions will come tomorrow.
In Asia, Japan -0.1% to 16492. Hong Kong -0.1% to 23530. China -0.1% to 3023. India -0.4% to 28523.
In Europe, at midday, London +0.4%. Paris +0.6%. Frankfurt +0.6%.
Futures at 6:20, Dow +0.3%. S&P +0.4%. Nasdaq +0.4%. Crude -0.6% to $43.04. Gold flat at $1318.
Ten-year Treasury Yield flat at 1.69%
(Source: Seeking Alpha)
Textbook Cycle Day 2 in prior session as price failed to hold bid and retracement selling began pushing lower to test lower pivot zones outline in prior DTS Briefing 9.19.16. Three-Day Central Pivot Zone has shifted back to bullish formation and as such becomes key support on pullbacks…Current 3D CPZ is 2131.25 – 2133.5.
Today is Cycle Day 3 (CD3)…Bulls have momentum heading into Fed Meeting…There remains room to move prices higher targeting 2147…2154- 56 zone.
Range Projections and Key Levels
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (Z) 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: Price will need to hold any selling above 2136.00 Central Pivot to keep the current upswing intact. First objective is to clear & convert PH (2146.75) to new upper support. IF this occurs, THEN upside is wide open to 2154 – 56 zone.
Scenario 2: Initial Sign of Weakness (SOW) would be to violate 2136 handle followed by violating and converting 2132.25 to lower resistance. Should this scenario unfold Bulls will have lost control, opening the door lower targeting 2126.50 – 2124.25 STATX Zone.
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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