Volatility is still reigning high in the markets, with Wall Street’s best fear gauge, known as the VIX, hitting levels yesterday that haven’t been seen in two months. The index traded as high as 23.73 intraday, as concerns about inflation spread to other areas of the market, with the Dow losing 473 points, to end the day down 1.4%. The Nasdaq meanwhile rebounded from earlier losses of 2%, but the buy-on-dip crowd couldn’t push the index into the green before the close.
Things aren’t looking better this morning. Stock index futures are all off by about 0.4% ahead of an inflation report that could shake markets once again.
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***Written 8 pm Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication.
Tuesday’s Session was Cycle Day 2 (CD2): Selling continued into this session, driving price down to mid-April Lows. Typical of CD2, price did find balance between 4152 – 4129 Value Area. Range was 82 handles on 2.848M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price is still below CD1 Low (4172), with historical odds favoring recovery. As such, estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4152, initially targets 4165 – 4172 zone.
2.) Price sustains an offer below 4129, initially targets 4115 – 4110 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistic covering 12 years of recorded tracking history.
For more detailed information for both bullish and bearish projected targets, please visit: PTG 3 Day Cycle and/or reference the Cycle Spreadsheet below:
Link to access full Cycle Spreadsheet >>Cycle Day 3 (CD3)
PVA High Edge = 4152 PVA Low Edge = 4129 Prior POC = 4145
Range Projections and Key Levels (ES) June 2021 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price continued its selling spree down to weekly suppot near 13100 5 day value low. CD1 Low ( 1305.50) is required to be above during CD3 to avoid a failed cycle statistic.Prior range was 310 handles on 782k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 13360 PVA Low Edge = 131292 Prior POC = 13316
Bull Scenario: IF Bulls sustain a bid above 13316, THEN initial upside estimate targets 13360 – 13400 zone.
Bear Scenario: IF Bears sustain an offer below 13316, THEN initial downside estimate targets 13260 – 13200 zone.
Range Projections and Key Levels (NQ) June 2021 (M) 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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