Traders look set to pare the robust gains seen on Wall Street this week after a rally that lifted the DJIA above 29,000 for the first time since February.
On the economic calendar, reports today include the latest jobless claims, July’s trade balance, revisions to Q2 productivity and labor costs, and the ISM’s non-manufacturing PMI for August.
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Prior Session was Cycle Day 2 (CD2): Early normal CD2 consolidation lead to explosive rally, pushing price yet again to a new all-time high. Range was 60.75 handles, double the 10-day average of 30, with 1.178M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price has exceeded this cycle’s most bullish projections and is pulling back during overnight trade. Price is still above prior value zone and as such , there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3560, initially targeting 3570 – 3575 zone.
2.) Price sustains an offer below 3560, initially targeting 3550 – 3540 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3560 PVA Low Edge = 3547 Prior POC = 3532
Range Projections and Key Levels (ES) September 2020 (U) Contract
Nasdaq 100 (NQ)
PVA High Edge = 12445 PVA Low Edge = 12306 Prior POC = 12382
Bull Scenario: IF Bulls sustain a bid above 12330, THEN initial upside estimate targets 12380 – 12400 zone.
Bear Scenario: IF Bears sustain an offer below 12330, THEN initial downside estimate targets 12280 – 12250 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.”
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