Markets
In his testimony to Congress on Wednesday, Fed Chair Jay Powell ditched the ambiguous lingo by confirming his support for a 25 bps interest rate hike at the FOMC’s next meeting in two weeks.
Source: SeekingAlpha.com
Economic Calendar
8:30 Initial Jobless Claims
8:30 Productivity and Costs
9:45 PMI Composite Final
10:00 Powell testifies before Senate Banking Committee
10:00 Factory Orders
10:00 ISM Service Index
10:30 EIA Natural Gas Inventory
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 2 (CD2): Price continued moving higher during the day extending this cycle’s momentum, fulling upside objectives. Range was 121 handles on 1.643M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Three-Day Cycle Statistic is in-place, so we’ll mark today as a “wild-card” with fluid geo-political newsy and Powell’s testimony. Price is trading near the upper-end of 5-day value, so with bulls in-control, it is theirs to lose. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains bid above 4370, initially targets 4398 – 4410 zone.
Bear Scenario: Price sustains offer below 4370, initially targets 4355 – 4350 zone.
*****The 3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
For more detailed information for both bullish and bearish projected targets, please visit: PTG 3 Day Cycle and/or reference the Cycle Spreadsheet below:
PVA High Edge = 4398 PVA Low Edge = 4336 Prior POC = 4381
Range Projections and Key Levels (ES) March 2022 (H) Contract
HOD ATR Range Projection: 4492; LOD ATR Range Projection: 4266; 3 Day Central Pivot: 4338; 3 Day Cycle Target: 4312; 10 Day Average True Range 126; VIX: 31
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price is trading near upper-end of 5 day value pre-RTH. Three-Day Cycle Statistic is in-place, so we will mark today as a “wild-card” for direction. Current momentum favors the bulls, so it is theirs to lose. Prior range was 378 handles on 620k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 14175, THEN initial upside estimate targets 14225 – 14250 zone.
Bear Scenario: IF Bears sustains offer below 14175, THEN initial downside estimate targets 14165 – 14160 zone.
PVA High Edge = 14177 PVA Low Edge = 13941 Prior POC = 14045
Range Projections and Key Levels (NQ) March 2022 (H) Contract
HOD ATR Range Projection: 14675; LOD ATR Range Projection: 13739; 3 Day Central Pivot: 14094; 3 Day Cycle Target: 14012; 10 Day Average True Range: 515; VIX: 31
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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