Markets
Source: SeekingAlpha.com
Economic Calendar
8:30 Housing Starts and Permits
2:00 PM FOMC Announcement
2:30 PM Chairman Press Conference
https://www.investing.com/economic-calendar/
***New: PTG Trading Room Chat Log’s Link
All eyes on the FOMC decision
Some have called for caution awaiting the Fed’s monetary policy for the current meeting. Chairman Jerome Powell is scheduled to make an appearance after the FOMC statement is released at 2:00 PM ET (1700 GMT).
The central bank is expected to keep rates unchanged and its $120 billion pace of monthly bond purchases on hold. An update from Powell, however, has the potential to trigger a move in bond yields, which would also move stocks. Eyes on the tech sector, which has been sensitive to recent yield hikes in government bonds.
Investors await data on oil stockpiles
Crude prices fell another day after Bloomberg reported that a torrent of Iranian oil had been gushing into China in recent weeks, crowding out imports from other nations and complicating efforts by the OPEC+ alliance to tighten supply in the global market.
OPEC members have been holding back production. That, combined with optimism over the recovery, has pushed oil higher in an uninterrupted rally since October.
10:30 EIA Petroleum Inventories
S&P 500
***Written 8 pm Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication.
Tuesday’s Session was Cycle Day 1 (CD1): Price continued in rally-mode until excess momentum fulfilled Cycle Penetration objectives, then reversed direction, selling down to yesterday’s late day breakout (3943), and finally settling neutral mid-range (3957.50). Range was 28 handles on 1.332M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Having closed mid-range, typical price action expected would be for continued consolidation of recent rally. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3960, initially targets 3970 – 3975 zone.
2.) Price sustains an offer below 3960, initially targets 3940 – 3935 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 2 (CD2)
PVA High Edge = 3967 PVA Low Edge = 3955 Prior POC = 3962
Range Projections and Key Levels (ES) June 2021 (M) Contract
HOD ATR Range Projection: 4002; LOD ATR Range Projection: 3895; 3 Day Central Pivot: 3942; 3 Day Cycle Target: 4015; 10 Day Average True Range 65; VIX: 21
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Decline which began late yesterday is spilling over into pre-RTH this morning. pushing price down to 3 Day Central Pivot Zone. Prior range was 239 handles on 466k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 13252 PVA Low Edge = 13123 Prior POC = 13141
Bull Scenario: IF Bulls sustain a bid above 13092, THEN initial upside estimate targets 13141 – 13168 zone.
Bear Scenario: IF Bears sustain an offer below 13092, THEN initial downside estimate targets 13016 – 12983 zone.
Range Projections and Key Levels (NQ) June 2021 (M) Contract
HOD ATR Range Projection: 13357; LOD ATR Range Projection: 12806; 3 Day Central Pivot: 13033; 3 Day Cycle Target: 13318; 10 Day Average True Range: 367; VIX: 21
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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