Markets
Equities took a breather on Monday following a rally that took major U.S. indexes to record highs, though the pullback does not seem to be lasting long, as futures look to start today’s session on the right foot. Dow +0.3%; S&P 500 +0.3%; Nasdaq +0.5%
Source: SeekingAlpha.com
Economic Calendar
8:55 Redbook Chain Store Sales
9:30 Fed’s Bostic: “Economic Recovery and Addressing Inequality”
9:35 Fed’s Brainard: “Artificial Intelligence and Financial Services”
10:00 Job Openings and Labor Turnover Survey
11:00 Fed’s Kaplan: “Racism and the Economy: Focus on Education”
11:00 Fed’s Bostic: “Racism and the Economy: Focus on Education”
12:00 PM Fed’s Mester Speech
1:00 PM Fed’s George Speech
1:00 PM Results of $38B, 10-Year Note Auction
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 3 (CD3): Failure to expand above CD2 High and as such decline pushed price lower finding buy response at 3775, which was yesterday’s projected lower target. Range was 44.25 handles on 1.255M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Normal for CD1 is some magnitude decline, with average measuring 3772. Overnight price is trading with a relatively narrow range within prior value zone. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3800, initially targets 3812 – 3817 zone.
2.) Price sustains an offer below 3800, initially targets 3775 – 3772 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3800 PVA Low Edge = 3785 Prior POC = 3795
Range Projections and Key Levels (ES) March 2021 (H) Contract
HOD ATR Range Projection: 3838; LOD ATR Range Projection: 3757; 3 Day Central Pivot: 3794; 3 Day Cycle Target: 3820; 10 Day Average True Range 50; VIX: 23
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is trading within prior session’s value zone. Prior Range was 233.50 handles on 448k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 12998 PVA Low Edge = 12904 Prior POC = 12973
Bull Scenario: IF Bulls sustain a bid above 12950, THEN initial upside estimate targets 13000 – 13040 zone.
Bear Scenario: IF Bears sustain an offer below 12950, THEN initial downside estimate targets 12900 – 12875 zone.
Range Projections and Key Levels (NQ) March 2021 (H) Contract
HOD ATR Range Projection: 13086; LOD ATR Range Projection: 12758; 3 Day Central Pivot: 12950; 3 Day Cycle Target: 13105; 10 Day Average True Range: 200; VIX: 23
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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