Markets (Top Stories)
Source: SeekingAlpha.com
Economic Calendar
8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
10:00 Existing Home Sales
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 2 (CD2): Gap down into support zone (4155 – 4150) quickly found responsive buyers that absorbed the selling. Reversal higher from opening range left shorts scrambling to cover their early sales throughout the day, as trend up rhythms filled the open gap, as well as achieving the upper target zone (4185 – 4190) outlined in yesterday’s DTS 4.19.23 Briefing. Prior range was 37 handles on 1.250M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price is currently below CD1 Low (4164.50), reversing prior session’s gains, trading down to prior low. Potential failed 3 Day Cycle if price cannot recover CD1 Low during the RTH Session. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4150, initially targets 4165 – 4170 zone.
Bear Scenario: Price sustains an offer below 4150, initially targets 4135 – 4130 zone.
PVA High Edge = 4183 PVA Low Edge = 4165 Prior POC = 4180
Range Projections and Key Levels (ES) June 2023 (M) Contract
HOD ATR Range Projection: 4185; LOD ATR Range Projection: 4131; 3 Day Central Pivot: 4173; 3 Day Cycle Target: 4164; 10 Day Average True Range 42; VIX: 17
Nasdaq 100 (NQ)
Prior Session was Cycle Day 2 (CD2): Gap down into support zone quickly found responsive buyers that absorbed the selling. Reversal higher from opening range left shorts scrambling to cover their early sales throughout the day, as trend up rhythms filled the open gap. Prior range was 161 handles on 526k contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price is currently below CD1 Low (13138), reversing prior session’s gains, trading down to prior low. Potential failed 3 Day Cycle if price cannot recover CD1 Low during the RTH Session. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 13065, THEN initial upside estimate targets 13120– 13140 zone.
Bear Scenario: IF Bears sustains offer below 13065, THEN initial downside estimate targets 13025 – 13020 zone.
PVA High Edge = 13210 PVA Low Edge = 13118 Prior POC = 13200
Range Projections and Key Levels (NQ) June 2023 (M) Contract
HOD ATR Range Projection: 13222; LOD ATR Range Projection: 12969; 3 Day Central Pivot: 13173; 3 Day Cycle Target: 13138; 10 Day Average True Range: 196; VIX: 17
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.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone.
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