Markets
Source: SeekingAlpha.com
Economic Calendar
9:45 PMI Composite Flash
10:00 Existing Home Sales
1:00 PM Results of $42B, 2-Year Note Auction
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 3 (CD3): Prior week ended with sellers in control as options expiration and trader sentiment have shifted to “risk-off.” Shortened holiday session yesterday. Friday’s prior range was 40 handles on 1.939M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Price weakness is spilling over into overnight activity as lower CD1 Violation Level (4050) has been fulfilled. Average Decline Range Projection measures 4033. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4050, initially targets 4065 – 4070 zone.
Bear Scenario: Price sustains an offer below 4050, initially targets 4035 – 4030 zone.
PVA High Edge = 4088 PVA Low Edge = 4068 Prior POC = 4076
Range Projections and Key Levels (ES) March 2023 (H) Contract
HOD ATR Range Projection: 4112; LOD ATR Range Projection: 4014; 3 Day Central Pivot: 4093; 3 Day Cycle Target: 4126; 10 Day Average True Range 62; VIX: 22
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price weakness has spilled over from last week’s options expiration weak closing. Overnight activity has pushed lower fulfilling CD1 Violation Target (12276). Average Decline Range Projection measures 12187. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 12276, THEN initial upside estimate targets 12330– 12360 zone.
Bear Scenario: IF Bears sustains offer below 12276, THEN initial downside estimate targets 12200 – 12187 zone.
PVA High Edge = 12400 PVA Low Edge = 12316 Prior POC = 12375
Range Projections and Key Levels (NQ) March 2022 (H) Contract
HOD ATR Range Projection: 12503; LOD ATR Range Projection: 12105; 3 Day Central Pivot: 12440; 3 Day Cycle Target: 12619; 10 Day Average True Range: 275; VIX: 22
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.”
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