Markets
Source: SeekingAlpha.com
Economic Calendar
8:30 Durable Goods
10:00 Pending Home Sales
10:30 Dallas Fed Manufacturing Survey
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 1 (CD1): Normal for CD1 as price declined establishing a new cycle low at 3947.50. Prior range was 75 handles on 1.676M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for CD2 is back n fill consolidation to work off recent selling activity. Price is currently trading higher during overnight and pre-RTH activity. Bulls will need to sustain a firm bid above 3975 to recover back into last week’s range. Initial recovery measures 3995 – 4005 3 Day Central Pivot Zone. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 3975, initially targets 3995 – 4005 zone.
Bear Scenario: Price sustains an offer below 3975, initially targets 3955 – 3950 zone.
PVA High Edge = 3977 PVA Low Edge = 3956 Prior POC = 3967
Range Projections and Key Levels (ES) March 2023 (H) Contract
HOD ATR Range Projection: 4036; LOD ATR Range Projection: 3935; 3 Day Central Pivot: 3998; 3 Day Cycle Target: 4015; 10 Day Average True Range 62; VIX: 21
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1 (CD1): Normal for CD1 as price declined establishing a new cycle low at 11923. Prior range was 291 handles on 631k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
Today is Cycle Day 2 (CD2)…Normal for CD2 is back n fill consolidation to work off recent selling activity. Price is currently trading higher during overnight and pre-RTH activity. Bulls will need to sustain a firm bid above 12000 to recover back into last week’s range. Initial recovery measures 12055 – 12075 zone. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 12000, THEN initial upside estimate targets 12055– 12075 zone.
Bear Scenario: IF Bears sustains offer below 12000, THEN initial downside estimate targets 11950 – 11940 zone.
PVA High Edge = 12002 PVA Low Edge = 10942 Prior POC = 11962
Range Projections and Key Levels (NQ) March 2022 (H) Contract
HOD ATR Range Projection: 12248; LOD ATR Range Projection: 11820; 3 Day Central Pivot: 12112; 3 Day Cycle Target: 12160; 10 Day Average True Range: 258; VIX: 21
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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