Markets
Futures inched between slight gains and losses overnight following the best day for Wall Street in six weeks as the Dow jumped more than 900 points and the S&P 500 closed up 3.2%.
Source: Seeking Alpha https://seekingalpha.com/
Economic Calendar
8:30 Housing Starts
8:55 Redbook Chain Store Sales
10:00 E-Commerce Retail Sales
10:00 Jerome Powell: “The Quarterly CARES Act Report to Congress”
2:00 Fed’s Rosengren Speech
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 3 (CD3): Opening Gap propelled price higher as TVGR (see comment below) took hold as price held firm bid throughout session closing in upper quartile of day’s range.
…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”. Given prior session’s strength, any decline may limited.
Price did push higher overnight fulfilling CD1 Penetration Level (2974.75) before reversing back into prior range. We’ll mark this level as initial resistance should it be retested during RTH Session. Buyers responded at 2931, test of prior VAL, marked as initial support.
Trader Vic Gap Rule (TVGR): “If there is a gap, and it is going to reverse, it will do so 10-15 minutes after the opening 95% of the time. Please believe me on the odds, they are real. If the market continues in the direction of the gap after 10 to 15 minutes, it is a strong sign that the move will continue for the rest of the day, closing in that direction as well. Even if the market reverses after the 10-15 minute period, if it fails to fill the gap, odds are that the market will close in the direction of the gap.”
Source: This Rule is cited from Victor Sperandeo’s book: Trader Vic II: Principles of Professional Speculation, pg. 231
P-VA High = 2963 P-VA Low = 2931 P-POC = 2948
Bull Scenario: IF Bulls hold bid above 2950, THEN initial upside estimate targets 2960 – 2965 zone
Bear Scenario: IF Bears hold offer below 2950, THEN initial downside estimate targets 2935 – 2930 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 3000; LOD ATR Range Projection: 2907; 3 Day Central Pivot: 2861; 3 Day Cycle Target: 2961; 10 Day Average True Range 75.50; VIX: 30.00
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is trading in a narrow range during overnight following a spike higher and reversing at 9386 CD1 Penetration Level. We’ll mark this level as initial resistance and 9290 as initial support.
P-VA High = 9360 P-VA Low = 9266 P-POC = 9325
Bull Scenario: IF Bulls hold bid above 9325, THEN initial upside estimate targets 9347 – 9361 zone.
Bear Scenario: IF Bears hold offer below 9325, THEN initial downside estimate targets 9303 – 9290 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 9478; LOD ATR Range Projection: 9230; 3 Day Central Pivot: 9113; 3 Day Cycle Target: 9371; 10 Day Average True Range: 227; VIX: 30.00
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.”
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