In Europe, at midday, London -0.3%. Paris -0.5%. Frankfurt -0.6%.
Futures at 6:20, Dow -0.5%. S&P -0.4%. Nasdaq-0.6%. Crude -1.5% to $51.49. Gold +0.4% to $1287.50.
Ten-year Treasury Yield -2 bps to 2.32%
8:30 Philly Fed Business Outlook
9:45 Bloomberg Consumer Comfort Index
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
2:00 PM Treasury Budget
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
S&P e-mini (ES) range has expanded to it’s widest spread in days in overnight trade, touching 2545 Possible Cycle Low projection. This qualifies for a technical break and will need to be confirmed over the coming days whether or not a more significant reversal unfolds.
Thursday is Cycle Day 3 (CD3)…Lower Cycle Targets have been fulfilled overnight, so it will be of utmost importance as to how the RTH Session handles the break. Will it be BTFD or STFB?
STAY NIMBLE and ALWAYS USE PROTECTIVE STOPS.
Range Projections and Key Levels (ES)
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: December 2017 (Z) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.
Scenario 1: Bulls will need to absorb the overnight selling above 2545 – 43 zone and recover back to 2555 handle.
Scenario 2: Bears are elated this morning with the overnight break, but they need to continue to now press to take full control. 2545 – 43 zone needs to break for extended push lower.
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
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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