Markets (Top Stories)
The U.S. is expected to have added fewer jobs in the last month of 2023 as the transitory effects from the auto and Hollywood strikes that boosted November’s gains are now in the rearview mirror. Nonfarm payrolls, which the U.S. Labor Department is slated to publish at 8:30 AM ET, are seen cooling to 170K in December from the 199K estimate in the prior month. That would spell good news for the Federal Reserve, which is banking on softer conditions to pull off a “soft landing” scenario for the economy.
Source: seekingalpha.com
Economic Calendar
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 3 (CD3): Positive 3-Day Cycle Statistic was achieved, albeit “barely”, as price recovered back to CD1 Low (4765.50) as outlined in prior DTS 1.4.24 briefing. Once this level was satisfied, selling returned, as long liquidation drove price down to KEY 4725 level. Prior range was 39 handles on 1.299M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline measures 4732.50, which has been fulfilled during prior session. Today, we will be looking for stabilization following three-days of persistent selling. Ideally, bulls want to recover price back into prior value and reclaim 4750. Non-Farm Payrolls could play an important roll in market reaction, as it is a key FED Policy Metric. .As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4735, initially targets 4750 – 4755 zone.
Bear Scenario: Price sustains an offer below 4735, initially targets 4725 – 4720 zone.
PVA High Edge = 4757 PVA Low Edge = 4740 Prior POC = 4745
Range Projections and Key Levels (ES) March 2024 (H) Contract
HOD ATR Range Projection: 4776; LOD ATR Range Projection: 4692; 3 Day Central Pivot: 4764; 3 Day Cycle Target: 4750; 10 Day Average True Range 43; VIX: 14
Nasdaq 100 (NQ)
Prior Session was Cycle Day 3 (CD3): NQ failed to secure a Positive 3-Day Cycle, as the recovery attempt fell far short of the 16622 objective. Failed cycles are signals for potential investor/trader sentiment shift, which could portend extended market weakness. Prior range was 151 handles on 551k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline measures 16398. Today we will be looking for stabilization following three-days of persistent selling. Ideally, bulls want to recover price back into prior value and reclaim 16515. Non-Farm Payrolls could play an important roll in market reaction, as it is a key FED Policy Metric. .As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 16455, initially targets 16510 – 16515 zone.
Bear Scenario: Price sustains an offer below 16455, initially targets 16395 – 16375 zone.
PVA High Edge = 16528 PVA Low Edge = 16466 Prior POC = 16515
Range Projections and Key Levels (NQ) March 2024 (H) Contract
HOD ATR Range Projection: 16646; LOD ATR Range Projection: 16273; 3 Day Central Pivot: 16630; 3 Day Cycle Target: 16515; 10 Day Average True Range: 195; VIX: 14
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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