In Europe, at midday, London flat. Paris -0.3%. Frankfurt -0.3%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.3%. Crude +0.3% to $57.74. Gold +0.4% to $1269. Bitcoin -1% to $17425.
Ten-year Treasury Yield flat at 2.46%
S&P 500 (ES)
Yesterday was a perfect Cycle Day 1 session as price scored a direct hit achieving downside target of 2682 handle outlined in prior DTS 12.19.17 Report. Scenario 2 stated: “IF price violates and converts PL (2691.50) to resistance, THEN downside targets 2688.25, followed by 2684.50 – 2682.00 zone.” Actual LOD = 2682.50
Today is Cycle Day 2 (CD2)…CD1 Low (2682.50) will now be marked as “secure cycle low” from which bulls can rally price higher with initial target measuring 2695.25. Price is within striking distance to expand to new all-time highs as traders count-down the remaining week of trading this year.
Nasdaq 100 (NQ)
NAZ also scored a perfect Cycle Day 1 decline as 6493.25 target was achieved in prior session. Overnight trade has price rallying targeting 6528 handle based upon average rally projection for Cycle Day 2.
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: March 2018 (ESH) 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: IF price converts P-VPOC (2688) to support, THEN initial upside targets 2698, followed by 1701 – 2703 zone.
Scenario 2: Failure to hold above P-VPOC (2688) sets up a retest of CD1 Low (2682.50) for surety. Conversion of this level to lower resistance opens door to deeper correction targeting 2678, followed by 2674 – 271 zone.
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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