Markets (Top Stories)
The final countdown
The path towards avoiding a federal government shutdown is getting slimmer with a pending deadline of 12:01 AM ET on Sunday. Millions of federal employees and military service members will be furloughed in the event that additional funding cannot be approved, the SEC will operate with minimal market oversight, and economic data releases will be delayed at a sensitive time for the U.S. economy. Americans who also rely on federal assistance could face service disruptions, there will be delays on small business loans and clinical trials for medical treatments, exporters won’t be able to get licenses, while a prolonged shutdown could impact air travel or other industries that rely heavily on federal workers.
Source: SeekingAlpha.com
Economic Calendar
8:30 International Trade in Goods (Advance)
8:30 Retail Inventories (Advance)
8:30 Wholesale Inventories (Advance)
8:30 Personal Income and Outlays
9:45 Chicago PMI
10:00 Consumer Sentiment
12:45 PM Fed’s Williams’ Speech
1:00 PM Baker Hughes Rig Count
3:00 PM Farm Prices
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 4301. Primary objective for the bulls was to stem any further decline and stabilize price, in which they were successful. Prior range was 55 handles on 1.946M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Having successfully squelched any residual selling, price proceeded to rally fulfilling Cycle Target (4342). Daily one-time framing down has been stopped, so now bulls will need to continue to build on the stabilization. We’ll mark 4330 as today’s Line-in-Sand. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4330, initially targets 4355 – 4360 zone.
Bear Scenario: Price sustains an offer below 4330, initially targets 4315 – 4310 zone.
PVA High Edge = 4352 PVA Low Edge = 4318 Prior POC = 4335
Range Projections and Key Levels (ES) December 2023 (Z) Contract
HOD ATR Range Projection: 4394; LOD ATR Range Projection: 4289; 3 Day Central Pivot: 4326; 3 Day Cycle Target: 4342; 10 Day Average True Range 57 VIX: 17
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price established a new cycle low at 14658. Primary objective for the bulls was to stem any further decline and stabilize price, in which they were successful. Prior range was 289 handles on 723k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Having successfully squelched any residual selling, price proceeded to rally fulfilling Cycle Target (14943). Daily one-time framing down has been stopped, so now bulls will need to continue to build on the stabilization. We’ll mark 14825 as today’s Line-in-Sand. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 14825, initially targets 14915 – 14945 zone.
Bear Scenario: Price sustains an offer below 14825, initially targets 14760 – 14750 zone.
PVA High Edge = 14947 PVA Low Edge = 14741 Prior POC = 14853
Range Projections and Key Levels (NQ) December 2023 (Z) Contract
HOD ATR Range Projection: 15103; LOD ATR Range Projection: 14646; 3 Day Central Pivot: 14771; 3 Day Cycle Target: 14943; 10 Day Average True Range: 248; 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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