Markets
An alarming rise in new COVID-19 cases continues to weigh on market sentiment, with U.S. stock index futures sliding over 1% overnight and crude futures off 4% to under $38/bbl.
Source: SeekingAlpha.com
Economic Calendar
8:30 International trade in goods (Advance)
8:30 Retail Inventories (Advance)
8:30 Wholesale Inventories (Advance)
10:00 State Street Investor Confidence Index
10:30 EIA Petroleum Inventories
11:00 Survey of Business Uncertainty
11:30 Results of $26B, 2-Year FRN Auction
1:00 PM Results of $55B, 5-Year Note Auction
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 2 (CD2): Price action unfolded normally for CD2, with consolidation and balancing within prior value. Specifically above POC (3385) and below VAH (3405), this acted as support/resistance throughout the session. That was until MOC Sell $1.215B forced price lower, closing on low of day (3368.50). Range was 40.50 handles on 1.535M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price will need to hold above the CD1 Low (3356) during the RTH Session to secure a Positive 3 Day Cycle Statistic. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3368, initially targets 3385 – 3395 zone.
2.) Price sustains an offer below 3368, initially targets 3356 – 3335 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3400 PVA Low Edge = 3386 Prior POC = 3390
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3378; LOD ATR Range Projection: 3320; 3 Day Central Pivot: 3410; 3 Day Cycle Target: 3388; 10 Day Average True Range 50; VIX: 36
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price has given up much of this cycle’s rally during overnight trade, but still above CD1 Low (11343.25). For today’s trading, there are two scenarios to consider.
PVA High Edge = 11592 PVA Low Edge = 11533 Prior POC = 11560
Bull Scenario: IF Bulls sustain a bid above 11452, THEN initial upside estimate targets 11465 – 11485 zone.
Bear Scenario: IF Bears sustain an offer below 11452, THEN initial downside estimate targets 11435 – 11415 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 11657; LOD ATR Range Projection: 11432; 3 Day Central Pivot: 11568; 3 Day Cycle Target: 11675; 10 Day Average True Range: 222; VIX: 36
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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