In Europe, at midday, London +0.1%. Paris -0.4%. Frankfurt -0.5%.
Futures at 6:20, Dow -0.2%. S&P -0.2%. Nasdaq -0.1%. Crude +0.1% to $56.80. Gold +0.4% to $1279.10. Bitcoin +12% to $6533.
Ten-year Treasury Yield -2 bps to 2.37%
S&P 500 (ES)
Monday is Cycle Day 2 (CD2)…Price is testing key support (2572) and CD1 Low (2571.50) in overnight trade action. IF this level fails to hold and converts to resistance, THEN deeper decline would be expected measuring 2562 Cycle Range Low.
Nasdaq 100 (NQ)
Naz is also testing it’s CD1 Low (6283.75). IF violated and converted to resistance, THEN downside measures 6259 handle.
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 (ESZ) 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 must hold test of 2572 handle and recover above 2582 – 85 3 Day Central Pivot Zone which is now marked as “key resistance.” Conversion of support to resistance opens door for deeper corrective decline initially measure 2562 handle.
Scenario 2: Bears have an opening to force log selling below 2572 and press for lower levels targeting 2562 handle. 2585 handle becomes bears risk-marker.
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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