Source: Seeking Alpha https://seekingalpha.com/
8:30 Consumer Price Index
8:55 Redbook Chain Store Sales
S&P 500 (ES)
Prior Session was Cycle Day 3 (CD3): Positive Cycle Statistic had been fulfilled early in this cycle with the rally reaching and surpassing price objectives. Range was was 76.75 on 1.351M 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 3495. Average CD1 Range is 59 handles. Price is holding firm bid during overnight trading within prior value zone. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3520, initially targeting 3540 – 3550 zone.
2.) Price sustains an offer below 3520, initially targeting 3510 – 3500 zone.
P -VA High = 3541 P – VA Low = 3501 P – POC = 3527
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3563; LOD ATR Range Projection: 3482; 3 Day Central Pivot: 3469; 3 Day Cycle Target: 3542; 10 Day Average True Range 54; VIX: 25
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price has firm bid trading within prior session’s range. As such, there are two scenarios to consider for today’s trading.
P – VA High = 12197 P – VA Low = 11925 P – POC = 12085
Bull Scenario: IF Bulls hold bid above 12085, THEN initial upside estimate targets 12197 – 12291 zone.
Bear Scenario: IF Bears hold offer below 12085, THEN initial downside estimate targets 12023 – 11925 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 12263; LOD ATR Range Projection: 12008; 3 Day Central Pivot: 11729; 3 Day Cycle Target: 12112; 10 Day Average True Range: 240; VIX: 25
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!
“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
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