Markets (Top Stories)
Source: Investing.com
Economic Calendar
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 1 (CD1): Normal Cycle Day 1 unfolded by establishing a new cycle low at 4702 (GBX) and 4719.75 (RTH). First week of 2024 has clearly been “risk-off” with four straight lower value area zones. (see screenshot below) Prior range was 58 handles on 1.663M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for CD2 is for two-way traffic to absorb recent selling pressure and to stabilize price action with overlapping value zones to halt the downward slide. Key Zone to initially focus on for Monday’s session is the (4740 – 4750) 3 Day Central Pivot Zone.
Bulls need to establish control above this zone to counterbalance the recent selling drive. As always, stay flexible and in-alignment with the primary intra-day forces. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4745, initially targets 4760 – 4765 zone.
Bear Scenario: Price sustains an offer below 4745, initially targets 4725 – 4720 zone.
PVA High Edge = 4745 PVA Low Edge = 4718 Prior POC = 4735
Range Projections and Key Levels (ES) March 2024 (H) Contract
HOD ATR Range Projection: 4774; LOD ATR Range Projection: 4701; 3 Day Central Pivot: 4745; 3 Day Cycle Target: 4769; 10 Day Average True Range 41; VIX: 13
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1 (CD1): Normal Cycle Day 1 unfolded by establishing a new cycle low at 16334 (GBX) and 16403.75 (RTH). First week of 2024 has clearly been “risk-off” with four straight lower value area zones. (see screenshot below) Prior range was 243 handles on 620k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for CD2 is for two-way traffic to absorb recent selling pressure and to stabilize price action with overlapping value zones to halt the downward slide. Key Zone to initially focus on for Monday’s session is the (16500 – 16532) 3 Day Central Pivot Zone.
Bulls need to establish control above this zone to counterbalance the recent selling drive. As always, stay flexible and in-alignment with the primary intra-day forces. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 16485, initially targets 16500 – 16532 zone.
Bear Scenario: Price sustains an offer below 16485, initially targets 16425 – 16410 zone.
PVA High Edge = 16515 PVA Low Edge = 16391 Prior POC = 16459
Range Projections and Key Levels (NQ) March 2024 (H) Contract
HOD ATR Range Projection: 16647; LOD ATR Range Projection: 16309; 3 Day Central Pivot: 16517; 3 Day Cycle Target: 16588; 10 Day Average True Range: 188; 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.”
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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