Markets (Top Stories)
Source: SeekingAlpha.com
Economic Calendar
10:00 Consumer Confidence
10:00 New Home Sales
10:00 Richmond Fed Mfg. Index
1:00 PM Results of $48B, 2-Year Note Auction
1:00 PM Money Supply
1:30 PM Fed’s Bowman’s speech
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price established a new cycle low at 4338.25. Primary objective for the bulls was to stem any further decline below 50 WEMA as noted in prior DTS 9/25/23 briefing of which they were successful (see ES Chart Image below). Prior range was 45 handles on 1.498M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Having successfully defended the 50 WEMA and squelching any further decline, now the next objective for the bulls is to maintain a responsive bid and build to reverse the negative sentiment. Normal for a Cycle Day 2 (CD2) would be for continued stabilization above 4375 – 4380 zone which was yesterday’s target zone. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4375, initially targets 4390 – 4395 zone.
Bear Scenario: Price sustains an offer below 4375, initially targets 4360 – 4355 zone.
PVA High Edge = 4375 PVA Low Edge = 4355 Prior POC = 4370
Range Projections and Key Levels (ES) December 2023 (Z) Contract
HOD ATR Range Projection: 4427; LOD ATR Range Projection: 4332; 3 Day Central Pivot: 4378; 3 Day Cycle Target: 4379; 10 Day Average True Range 49 VIX: 17
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price established a new cycle low at 14782.25. Prior range was 173 handles on 564k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Having successfully squelched any further decline, now the next objective for the bulls is to maintain a responsive bid and build to reverse the negative sentiment. Normal for a Cycle Day 2 (CD2) would be for continued stabilization above 14885 handle. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 14935, initially targets 14985 – 15000 zone.
Bear Scenario: Price sustains an offer below 14935, initially targets 14890 – 14885 zone.
PVA High Edge = 14914 PVA Low Edge = 14840 Prior POC = 14900
Range Projections and Key Levels (NQ) December 2023 (Z) Contract
HOD ATR Range Projection: 15160; LOD ATR Range Projection: 14722; 3 Day Central Pivot: 14918; 3 Day Cycle Target: 15073; 10 Day Average True Range: 226; VIX: 17
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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