Economic Calendar

7:00 MBA Mortgage Applications
8:55 Redbook Chain Store Sales
9:15 Industrial Production
10:00 NAHB Housing Market Index
2:00 PM Fed’s Beige Book
4:00 PM Treasury International Capital

S&P 500 (ES)

Today is Cycle Day 2 (CD2)…Early rally reached 2808 ATR(10) level at which time price reversed and accelerated once 6798.50 was violated, as outlined in prior DTS 1.16.18 Report. Normal CD1 Decline targets were fulfilled at which time the rally began. Cycle Day 1 Low (2769.25) is marked at “key support’ should there be a test for surety. Objective target for CD2 measures 2797.70.

Scenario 1: IF price clears and converts PC (2783.00), THEN initial recovery rally objective measures 2787.75 3D CPZ, follows by 2704 – 2797 3 Day Rally target zone.

Scenario 2: IF price fails to hold PC (2883.00, THEN downside test of CD1 Low (2769.25) is more likely to unfold.

Range Projections and Key Levels (ES)

HOD  ATR Range Projection: 2798.75; LOD ATR Range Projection: 2773.25; Cycle Day 1 Low: 2769.25 3 Day Central Pivot: 2787.75; 3 Day Cycle Target: 2797.25; 10 Day Average True Range: 19.75; VIX: 11.34

Nasdaq 100 (NQ)

Today is Cycle Day 2 (CD2)…Normal CD1 Decline fulfilled downside objectives at which time the rally began. Bulls will need to secure 6729.25 CD1 Low on any test. Initial upside CD2 objective measures 6771.25, followed by 6787.00 – 6793.00.

Scenario 1: IF price stays above PC (6761.00), THEN initial objective measures 6771.25 3D CPZ, followed by 6787 – 6793 zone.

Scenario 2: IF price violates PC (6761.00), THEN odds favor a retest of CD1 Low (6729.25)

Range Projections and Key Levels (NQ)

HOD  ATR Range Projection: 6797.00; LOD ATR Range Projection: 6718.75; Cycle Day 1 Low: 6729.25 3 Day Central Pivot: 6771.25; 3 Day Cycle Target: 6822.29; 10 Day Average True Range: 60.43; VIX: 11.34

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.”

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS

IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone.

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