Stocks are getting jittery ahead of a week that could shake up the financial markets. The presidential debate and OPEC could spur some volatility, while a rush of consumer, manufacturing and other data may reveal whether the U.S. economy is really beginning to struggle. After holding off on a rate hike last Wednesday, the Fed will also keep itself on the radar, with testimony from Janet Yellen and a fresh round of speeches from regional presidents.
In Asia, Japan -1.3% to 16544. Hong Kong -1.6% to 23318. China -1.8% to 2980. India -1.4% to 28280.
In Europe, at midday, London -1.2%. Paris -1.8%. Frankfurt -1.6%.
Futures at 6:00, Dow -0.6%. S&P -0.6%. Nasdaq -0.7%. Crude +0.7% to $44.77. Gold -0.1% to $1340.30.
Ten-year Treasury Yield -1 bps to 1.6%
(Source: Seeking Alpha)
Cycle Day 3 failed to pushed above an already extended high and as such this cycle’s decline began in earnest in prior session. Price continued its downward slide in overnight trade reaching 2148 which is CD1 Maximum Violation Level.
Today is Cycle Day 1 (CD1)…Violation of CD3 Low (2156) opens door for deeper downside trade action with lower targets 2144 – 2141 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 above 2144 handle and convert 2150 to support to get a rally back above 2156 (CD3 Low). Resistance should develop between 2157 – 2161 zone.
Scenario 2: Price has violated CD3 Low (2156) and trading near 2148 lower violation level. Further weakness below would give up all of last weeks rally. 2144 – 2141 support 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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