Markets
S&P 500 futures climbed 1.5% overnight, regaining some poise after two days of steep losses, as traders came to terms with the effects of this week’s spectacular collapse in oil prices. Also boosting sentiment was a fresh $484B relief package for small businesses.
Source: Seeking Alpha https://seekingalpha.com/
US Futures Markets are set for +1.5% gain for the opening bell.
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
9:00 FHFA House Price Index
10:30 EIA Petroleum Inventories
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
***IMPORTANT >>> IF preset $risk parameters have been exceeded in your individual trade plan, THEN simply stand-aside or trade in simulation-mode until trade risk can properly be managed.
We’ll keep the “HIGH SURF WARNING FLAG” posted as volatility remains elevated, with VIX 38 and ATR (3) 90 handles.
S&P 500
Tuesday’s Session was Cycle Day 2 (CD2): This Cycle’s decline continued into CD2 with a violation of CD1 Low (2804.25). Price pushed lower throughout the session fulfilling CD2 Violation Target Level (2734.25), 70 handles from prior low.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Having closed low within the range, we have two scenarios: 1.) Violation of CD2 Low (2717.25), extending targeting CD3 Violation Level (2704.50). 2.) Price holds CD2 Low (2717.25), pushing higher on recovery rally targeting 2760 – 2775 zone.
Cycle’s Primary Goal is to fully recover CD1 Low (2804.25) for a Positive 3 Day Rally. Unsuccessful attempt will trigger a “failed-cycle” hinting at further weakness in the coming days.
PVA High Edge = 2760 PVA Low Edge = 2720 Prior POC = 2730
Bull Scenario: IF Bulls hold bid above 2750, THEN initial upside estimate targets 2760 – 2775 zone.
Bear Scenario: IF Bears hold offer below 2750, THEN initial downside estimate targets 2720 – 2705 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 2798; LOD ATR Range Projection: 2698; 3 Day Central Pivot: 2817; 3 Day Cycle Target: 2804.25; 10 Day Average True Range 85; VIX: 44
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price has rallied from prior close during overnight trade recovering three-fourths of prior value area range. Primary goal for bulls is to fully recover CD1 Low (8687) to avert a “failed” Cycle Statistic.
PVA High Edge = 8590 PVA Low Edge = 8345 Prior POC = 8388
Bull Scenario: IF Bulls hold bid above 8525, THEN initial upside estimate targets 8565 – 8590 zone.
Bear Scenario: IF Bears hold offer below 8525, THEN initial downside estimate targets 8500 – 8475 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 8673; LOD ATR Range Projection: 8295; 3 Day Central Pivot: 8695; 3 Day Cycle Target: 8687; 10 Day Average True Range: 259; VIX: 44
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!
Good Trading…David
“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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