Markets (Top Stories)
Source: SeekingAlpha.com
Economic Calendar
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price established a new cycle low at 4357.75 as a rough Treasury Auction, combined with hawkish JPOW comments, sent yields higher and equities lower. Prior range was 55 handles on 1.904M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Persistent selling overcame the bulls resolve as prices collapsed below 4375 support, fulfilling downside target zone (4360 – 4355) outlined in prior DTS 11.9.23 briefing. “Bear Scenario: Price sustains an offer below 4375, initially targets 4360 – 4355 zone.”. Price is back to a critical juncture (50 DEMA) as bulls are on the defensive heading into FRYDAY. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4360, initially targets 4375 – 4385 zone.
Bear Scenario: Price sustains an offer below 4360, initially targets 4345 – 4335 zone.
PVA High Edge = 4396 PVA Low Edge = 4358 Prior POC = 4363
Range Projections and Key Levels (ES) December 2023 (Z) Contract
HOD ATR Range Projection: 4411; LOD ATR Range Projection: 4310; 3 Day Central Pivot: 4386; 3 Day Cycle Target: 4438; 10 Day Average True Range 54; VIX: 15
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price established a new cycle low at 15236.75 as a rough Treasury Auction, combined with hawkish JPOW comments, sent yields higher and equities lower. Prior range was 217 handles on 699k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Persistent selling overcame the bulls resolve as prices collapsed below 15300 support, fulfilling downside target zone (15250 – 15230) outlined in prior DTS 11.9.23 briefing. “Bear Scenario: Price sustains an offer below 15300, initially targets 15250 – 15230 zone.” As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 15255, initially targets 15305 – 15315 zone.
Bear Scenario: Price sustains an offer below 15255, initially targets 15155 – 15140 zone.
PVA High Edge = 15429 PVA Low Edge = 15326 Prior POC = 15374
Range Projections and Key Levels (NQ) December 2023 (Z) Contract
HOD ATR Range Projection: 15439; LOD ATR Range Projection: 15029; 3 Day Central Pivot: 15330; 3 Day Cycle Target: 15556; 10 Day Average True Range: 224; VIX: 15
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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