Markets
Investors await Federal Reserve Chair Jerome Powell’s semi-annual testimony on monetary policy before the Senate Banking Committee later in the day for clues on the central bank’s future rate path amid a wave of strong economic data. Powell will deliver the same testimony before the House Financial Services Committee on Wednesday.
Source: SeekingAlpha.com
Economic Calendar
10:00 Jerome Powell Speech
10:00 Wholesale Inventories (Preliminary)
1:00 PM Results of $40B, 3-Year Note Auction
3:00 PM Consumer Credit
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 4041.75. Prior range was 40 handles on 1.476M 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 activity. Price has traded in a relatively narrow range during overnight action as traders await Fed Chair JPOW’s Senate Banking Committee testimony today for clues on the central bank’s future rate path amid a wave of strong economic data. We will mark 4055 as today’s Line-in-Sand (LIS). As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4055, initially targets 4075 – 4080 zone.
Bear Scenario: Price sustains an offer below 4055, initially targets 4040 – 4035 zone.
PVA High Edge = 4067 PVA Low Edge = 4045 Prior POC = 4053
Range Projections and Key Levels (ES) March 2023 (H) Contract
HOD ATR Range Projection: 4110; LOD ATR Range Projection: 4005; 3 Day Central Pivot: 4018; 3 Day Cycle Target: 4014; 10 Day Average True Range 60; VIX: 18
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1 (CD1): Normal for CD1 as price declined establishing a new cycle low at 12276.25. Prior range was 210 handles on 603k 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 activity. Price has traded in a relatively narrow range during overnight action as traders await Fed Chair JPOW’s Senate Banking Committee testimony today for clues on the central bank’s future rate path amid a wave of strong economic data. We will mark 12360 as today’s Line-in-Sand. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 12360, THEN initial upside estimate targets 12435– 12445 zone.
Bear Scenario: IF Bears sustains offer below 12360, THEN initial downside estimate targets 12275 – 12265 zone.
PVA High Edge = 12404 PVA Low Edge = 12312 Prior POC = 12356
Range Projections and Key Levels (NQ) March 2022 (H) Contract
HOD ATR Range Projection: 12066; LOD ATR Range Projection: 11768; 3 Day Central Pivot: 12063; 3 Day Cycle Target: 12280; 10 Day Average True Range: 256; 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
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