The S&P 500 and the DJIA have now rallied for five consecutive sessions since falling into correction territory last week, with both indexes up 4% and on track for their biggest weekly percentage rise since November 2016. The Nasdaq is up over 5%, representing its best week since October 2014.
In Asia, Japan +1.2%. Hong Kong closed. China closed. India -0.8%.
In Europe, at midday, London +0.6%. Paris +0.8%. Frankfurt +0.5%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq +0.12%. Crude +0.2% to $61.31. Gold +0.4% to $1360.80. Bitcoin -2.9% to $9729.
Ten-year Treasury Yield flat at 2.89%
Economic Calendar
8:30 Housing Starts
8:30 Import/Export Prices
10:00 Consumer Sentiment
10:00 E-Commerce Retail Sales
1:00 PM Baker-Hughes Rig Count
S&P 500 (ES)
Today is Cycle Day 3 (CD3)…Continuation rally has pushed price to 2746.50 CD3 Penetration Levels in overnight trade. Next upside level targets 2756 handle.
Scenario 1: IF price clears and converts PH (2736.75), THEN upside targets 2746.50 Penetration Level.
Scenario 2: IF price violates and converts PC (2734.50) to lower resistance, THEN pullback targets 2720 – 17 zone, followed by 2714 – 12 VWAP.
HOD ATR Range Projection: 2791.21; LOD ATR Range Projection: 2688.00; Cycle Day 1 Low: 2627.00; 3 Day Central Pivot: 2683.50; 3 Day Cycle Target: 2715.00; 10 Day Average True Range 58.71; VIX: 18.79
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Continuation rally has reached 6855.85 CD3 Penetration Level in overnight trade. Further upside measures 6883 handle.
Scenario 1: IF price clears and converts PH (6827.50), THEN targets 6855 handle, followed by 6878 – 83 zone.
Scenario 2: IF price violates and converts PC (6820.75) to lower resistance, THEN pullback initially targets 6790 followed by 6760 – 50 zone.
Range Projections and Key Levels (NQ)
HOD ATR Range Projection: 6982.66; LOD ATR Range Projection: 6692.34; Cycle Day 1 Low: 6456.25; 3 Day Central Pivot: 6819.75; 3 Day Cycle Target: 6739.34; 10 Day Average True Range: 167.41; VIX: 18.79
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.”
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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