Markets (Top Stories)
The Fed’s preferred inflation gauge, the Core Personal Consumption Expenditure (PCE), will be released by the US Bureau of Economic Analysis (BEA) on Friday, January 26 at 13:30 GMT and as we get closer to the release time, here are the forecasts of economists and researchers of eight major banks.
Headline PCE is expected to remain steady at 2.6% year-on-year while core is expected to fall two ticks to 3.0%. On a monthly basis, both are expected to come in at 0.2%.
Source: fxstreet.com
Economic Calendar
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 3 (CD3): As stated in prior DTS 01.25.24 “We’ll mark today as a “wild-card”…bullish directional influence may reverse at any time.” Price oscillated between 4895 (LIS) and 4926 cycle penetration level, continuing the current triangle consolidation pattern. Prior range was 33 handles on 1.457M contracts exchanged.
Note: You can view daily Trading Room Chat Logs at: https://www.dropbox.com/home/PTG%20MTS%20Trading%20Room%20Chat%20Logs
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline measures 4892. Price continues to consolidate between 4905 – 4925 value area, which we’ll mark as “key” bull/bear edges. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4925, initially targets 4935 – 4945 zone.
Bear Scenario: Price sustains an offer below 4905, initially targets 4890 – 4885 zone.
PVA High Edge = 4924 PVA Low Edge = 4908 Prior POC = 4915
Range Projections and Key Levels (ES) March 2024 (H) Contract
HOD ATR Range Projection: 4956; LOD ATR Range Projection: 4874; 3 Day Central Pivot: 4905; 3 Day Cycle Target: 4951; 10 Day Average True Range 46; VIX: 13
Nasdaq 100 (NQ)
Prior Session was Cycle Day 3 (CD3): Price retested 3 Day Cycle Level (17754) before reversing direction, pushing down to test 17600 (LIS). Prior range was 210 handles on 702k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline measures 17586 which has been surpassed, as downside momentum is currently in-place. Retest of 5-day POC (17468) appears the likely scenario. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 17555, initially targets 17615 – 17635 zone.
Bear Scenario: Price sustains an offer below 17555, initially targets 17495 – 17465 zone.
PVA High Edge = 17727 PVA Low Edge = 17620 Prior POC = 17695
Range Projections and Key Levels (NQ) March 2024 (H) Contract
HOD ATR Range Projection: 17751; LOD ATR Range Projection: 17329; 3 Day Central Pivot: 17596; 3 Day Cycle Target: 17856; 10 Day Average True Range: 242; VIX: 13
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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