S&P 500
Prior Session was Cycle Day 2: DTS Briefing’s have been repeatedly noting cautious comments regarding increased potential for corrective decline.
“Risk of sharp pullback/decline is now elevated given impactful news events (Election…FOMC) are now in the rearview mirror. Profit-taking becomes a real possibility should the FOMO rally buyers decide to step-back.”
Also from prior Briefing:
“Price has now established a 5-day consolidation trading range (70 pts) between 5975 – 6045 and a well-defined Value Area between 6005 – 6035. POC 6025”
“These respective edges will form key references for the next expansionary phase, once the current contraction/consolidation phase ends.”
Price violated the 5-Day Value Low (6005) noted in prior DTS Briefing 11.14.24 as “long-liquidation” selling accelerated down to the Nov. 6th close (5965) and below the 5-day range low. Range for today was 56 handles on 1.277M contracts exchanged.
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 11.14.24
Check out the link to learn more about the Taylor 3-Day Cycle and secure your FREE TRIAL.
…Transition from Cycle Day 2 to Cycle Day 3
Transition into Cycle Day 3: OPEX is on-deck for today’s session, so how this week closes may be an important “tell” going forward. IF the BTFD crowd is still active, THEN price should attempt a relief rally to close the week in green territory.
We’ll be monitoring if there is spill-over below the 5965 level. Break and conversion target 5955 – 5940 zone.
So with this in mind, our “game-play” will remain true to our discipline in maintaining positioning that is aligned with market forces which continues to serve us well, so stay the course.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 5965, initially targets 5985 – 5995 zone.
Bear Scenario: Price sustains an offer below 5965, initially targets 5955 – 5940 zone.
PVA High Edge = 6022 PVA Low Edge = 5988 Prior POC = 6005
ES (Profile)
Nasdaq 100 (NQ)
Prior Session was Cycle Day 2: Failure for the bulls to reclaim the LIS 21180 set in-motion downside selling pressure throughout the day’s range consolidation. But “bricks on ticks” selling was simply to overwhelming, as longs were liquidated into the closing bell. Range 239 handles on 545k contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
Transition into Cycle Day 3: OPEX is on-deck for today’s session, so how this week closes may be an important “tell” going forward. IF the BTFD crowd is still active, THEN price should attempt a relief rally to close the week in green territory.
So with this in mind, our “game-play” will remain true to our discipline in maintaining positioning that is aligned with market forces which continues to serve us well, so stay the course.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 20950, initially targets 21030– 21050 zone.
Bear Scenario: Price sustains an offer below 20950, initially targets 20888 – 20805 zone.
PVA High Edge = 21197 PVA Low Edge = 21107 Prior POC = 21157
NQ Chart (Profile)
Economic Calendar
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.” –BR
*****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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