Markets
Stock index futures appear to be in wait-and-see mode, inching between gains and losses overnight, as hopes for a quick economic rebound are brought into question. “The path ahead is both highly uncertain and subject to significant downside risks,” Jerome Powell declared yesterday as the S&P 500 closed lower for the second day in a row.
Source: Seeking Alpha https://seekingalpha.com/
Economic Calendar
8:30 Initial Jobless Claims
8:30 Import/Export Prices
10:30 EIA Natural Gas Inventory
1:00 PM Fed’s Kashkari: “Our Economy and Health in Crisis”
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 3 (CD3): Early rally attempt failed to hold bid as sellers aggressively sold fulfilling lower CD3 Violation Targets. Failing to recover the CD1 Low (2889.75) creates a “failed” 3 Day Cycle. Only NQ was able to successfully produce a positive cycle statistic, before selling off.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Normal for CD1 is some magnitude decline in search for new “secure low”. Key Line-In-Sand (LIS) is now marked at 2820 handle. Average Decline measures 2750.
P-VA High = 2845 P-VA Low = 2786 P-POC = 2810
Bull Scenario: IF Bulls hold bid above 2820, THEN initial upside estimate targets 2830 – 2845 zone
Bear Scenario: IF Bears hold offer below 2820, THEN initial downside estimate targets 2800 – 2785 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 2868; LOD ATR Range Projection: 2752; 3 Day Central Pivot: 2872; 3 Day Cycle Target: 2936; 10 Day Average True Range 64; VIX: 37.00
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is trading in a narrow range during overnight with a downward skew. Key Line-In-Sand (LIS) is marked 9040.
P-VA High = 9103 P-VA Low = 8890 P-POC = 8934
Bull Scenario: IF Bulls hold bid above 9040, THEN initial upside estimate targets 9070 – 9095 zone.
Bear Scenario: IF Bears hold offer below 9040, THEN initial downside estimate targets 8930 – 8900 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 9196; LOD ATR Range Projection: 8772; 3 Day Central Pivot: 9140; 3 Day Cycle Target: 9318; 10 Day Average True Range: 221; VIX: 37.00
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.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone.
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