Markets
U.S. stock index futures are hugging the flatline with traders in wait-and-see mode as coronavirus aid negotiations continue to drag along.
Source: SeekingAlpha.com
Economic Calendar
10:30 EIA Petroleum Inventories
https://www.investing.com/economic-calendar/
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S&P 500
***Written 8 pm Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication
Tuesday’s Session was Cycle Day 3 (CD3): Similar action to previous cycle in that price was well below CD1 Low at beginning of session, and rallied throughout to reclaim 3461.25, securing a Positive 3 Day Cycle Statistic. It’s important to note the odds (91%) favor a positive cycle by the end of CD3. Range was 51 handles on 1.682M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Majority of this cycle’s decline from CD3 High (3469.75) down to CD1 Average Decline (3415) is in-place. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3435, initially targets 3455 – 3470 zone.
2.) Price sustains an offer below 3435, initially targets 3425 – 3415 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3450 PVA Low Edge = 3431 Prior POC = 3435
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3472; LOD ATR Range Projection: 3416; 3 Day Central Pivot: 3456; 3 Day Cycle Target: 3453; 10 Day Average True Range 54; VIX: 30
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Normal for CD1 is decline with average measuring 11518 handle. For today’s trading, there are two scenarios to consider.
PVA High Edge = 11726 PVA Low Edge = 11645 Prior POC = 11680
Bull Scenario: IF Bulls sustain a bid above 11680, THEN initial upside estimate targets 11745 – 11770 zone.
Bear Scenario: IF Bears sustain an offer below 11680, THEN initial downside estimate targets 11585 – 11518 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 11825; LOD ATR Range Projection: 11505; 3 Day Central Pivot: 11770; 3 Day Cycle Target: 11675; 10 Day Average True Range: 240; VIX: 30
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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