U.S. stock index futures are pointing to a solid open, with DJIA futures up 262 points, or 1.1% to 25,124, brushing off increases to U.S. inflation that put fears in the market last week. While investors seem to be pointing to robust fundamentals, some analysts caution that rising consumer prices could produce more volatility this year. Government bond yields are still continuing their march higher, with the 10-year Treasury note yield edging up to 2.93%.
In Asia, Japan +1.5%. Hong Kong +2%. China +0.5%. India +0.4%.
In Europe, at midday, London +0.5%. Paris +1.4%. Frankfurt +0.7%.
Futures at 6:20, Dow +1.1%. S&P +0.7%. Nasdaq +0.7%. Crude flat at $60.60. Gold -0.2% to $1354.80. Bitcoin +1% to $9567.
Ten-year Treasury Yield +2 bps to 2.93%
8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
8:30 Producer Price Index
8:30 Empire State Mfg Survey
9:15 Industrial Production
9:45 Bloomberg Consumer Comfort Index
10:00 NAHB Housing Market Index
10:30 EIA Natural Gas Inventory
4:00 PM Treasury International Capital
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
S&P 500 (ES)
Today is Cycle Day 2 (CD2)…Normal CD1 Decline fulfilled downside objective of 2632.30 at which time the rally began carrying price up to 2715 CD2 Penetration Level in overnight trade.
Scenario 1: IF price clears and converts PH (2701.75), THEN initial objective targets 2715.40, followed by 2726 handle.
Scenario 2: Price is currently above PH (2701.75) and would need to violate and convert to lower resistance to get a deeper downside move targeting 2685 handle, followed by 2676 VPOC.
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price declined in prior session fulfilling normal CD1 Decline Target 6475 handle, at which time rally began reaching 6739.34 CD2 Penetration Level in overnight trade.
Scenario 1: IF price clears and converts PH (6692.75), THEN initial upside target 6739.34 followed by 6760 handle.
Scenario 2: IF price violates and converts PH (6692.75) to lower resistance, THEN deeper downside targeting 6670 followed by 6650 handle.
Range Projections and Key Levels (NQ)
HOD ATR Range Projection: 6849.72; LOD ATR Range Projection: 6564.78; Cycle Day 1 Low: 6456.25; 3 Day Central Pivot: 6548.50; 3 Day Cycle Target: 6739.34; 10 Day Average True Range: 175.22; VIX: 18.64
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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