S&P 500
Prior Session was Cycle Day 2: Typical CD2 as MATD – *Morning/Market After Trend Day” consolidation rhythms dominated the morning session, with price successfully retesting prior low zone. Notable was the reclaim of 5870, which lead to an afternoon rally fulfilling the 5890 Cycle Day 2 (CD2) range objective. Prior range was 39 handles on 887k contracts exchanged.
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 10.16.24
Check out the link to learn more about the Taylor Cycle and secure your FREE TRIAL.
…Transition from Cycle Day 2 to Cycle Day 3
Transition into Cycle Day 3: The “relief-rally” which we noted in prior briefing for yesterday’s session unfolded, fulfilling the 5890 CD2 range target.
Bulls will be looking to build on this session’s momentum by clearing and converting 5895, potentially forcing a “short-squeeze.”
Bears need to orchestrate another “bear-raid” below the 5850 CD1 Low to force long liquidation. Between these levels price can continue consolidating, building energy for the next directional move.
Our discipline of maintaining positioning that is aligned with market forces continues to serve us well, so stay the course.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 5895, initially targets 5905 – 5910 zone.
Bear Scenario: Price sustains an offer below 5870, initially targets 5855 – 5850 zone.
PVA High Edge = 5892 PVA Low Edge = 5865 Prior POC = 5886
ES (Chart Profile)
Nasdaq 100 (NQ)
Prior Session was Cycle Day 2: Typical CD2 as MATD-*Morning/Market After Trend Day” consolidation rhythms dominated the morning session with price selling below prior low, before regaining its composure and stabilizing. Notable reclaim of the open range, which we highlighted in the live trading room, aided the afternoon relief rally, which stalled just before reaching the 20400 target. HOD = 20398.50. Prior range was 192 handles on 411k contracts exchanged.
Check out the link to learn more about the Taylor Cycle and secure your FREE TRIAL.
…Transition from Cycle Day 2 to Cycle Day 3
Transition into Cycle Day 3: The initial 3-Day Cycle target (20406.50) remains an open level to possibly be fulfilled and exceeded in today’s session. Tech stocks are under pressure lately, which may continue to be a factor for the overall market’s ability to rally. Fulfilling this cycle’s target objective will be an important test to tech’s strength and fortitude.
Our discipline of maintaining positioning that is aligned with market forces continues to serve us well, so stay the course.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 20300, initially targets 20350– 20380 zone.
Bear Scenario: Price sustains an offer below 20300, initially targets 20250 – 20205 zone.
PVA High Edge = 20368 PVA Low Edge = 20275 Prior POC = 20300
NQ Chart (Profile)
Economic Calendar
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.” –BR
*****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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