S&P 500 and Nasdaq futures fell another 5% in overnight action, hitting the so-called limit down threshold, as the two indexes look to join the Dow Jones Industrial Average in bear market territory.
The latter, which tumbled another 1,200 points in recent hours, crashed on Wednesday after the WHO classified the coronavirus outbreak as a pandemic for the first time.
Threatening more disruptions to the world economy, President Trump said all travel from Europe to the U.S. would be suspended for 30 days. Efforts were also announced on deferred tax payments, payroll tax relief and low interest business loans, but investors seemed to have been looking for more
Source: Seeking Alpha https://seekingalpha.com/
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Prior Session was Cycle Day 1 (CD1)…Normal / Extreme Normal CD1 decline pushed price down hard yet again closing on lows of session.
This leads us into today’s Cycle Day 2 (CD2)…Another LIMIT DOWN 5% has occurred during overnight trade to 2601. As of this writing (8:00 am) price is “pegged” to the low, but no strong buying has yet to develop. CD2 Statistical Extreme Target (2612) has also been fulfilled.
Futures hit LIMIT DOWN during overnight trade…Many of you have not experienced “limit down” sessions, so please review the NYSE Circuit Breaker Rules in the section below.
Stock index futures in the U.S. plunged the 5% limit overnight, triggering limit-down rules, meaning only transactions at or above that threshold are allowed. Once the market opens, NYSE circuit breakers will work like this: trading halts for 15 minutes if the S&P 500 falls 7% at any time before 3:25 p.m. ET. Another 15-minute pause is triggered if losses reaches 13%. If the decline hits 20%, markets will close for the day
P – VA High = 2787 P – VA Low = 2731 P – POC = 2739
Bull Scenario: IF Bulls hold bid above 2601, THEN initial upside estimate targets 2650 – 2670 zone
Bear Scenario: IF Bears hold offer below 2601, THEN initial downside estimate targets 2582 – 2560 zone.
Range Projections and Key Levels (ES) March 2020 (H) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)… Another LIMIT DOWN 5% has occurred during overnight trade to 7590. As of this writing (8:00 am) price is “pegged” to the low, but no strong buying has yet to develop.
P – VA High = 8200 P – VA Low = 8026 P – POC = 8150
Bull Scenario: IF Bulls hold bid above 7590, THEN initial upside estimate targets 7740 – 7790 zone.
Bear Scenario: IF Bears hold offer below 7590, THEN initial downside estimate targets 7500 – 7350 zone.
Range Projections and Key Levels (NQ) March 2020 (H) Contract
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.”
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