Markets (Top Stories)
Economic Calendar
9:45 PMI Composite Flash
1:00 PM Baker-Hughes Rig Count
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 3 (CD3): Markets declined below their CD1 Low overnight. Since markets opened the day session below their CD1 Low we knew that we had good odds of rallying back above and they did, fulfilling Positive 3-Day Cycle Statistic, only to be followed by a new decline and a late day rally. Prior range was 30 handles on 1.235M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 4119. There is room for the decline to continue, unless the late day rally was just an early start of the rally. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4155, initially targets 4165 – 4170 zone.
Bear Scenario: Price sustains an offer below 4155, initially targets 4140 – 4135 zone.
PVA High Edge = 4162 PVA Low Edge = 4145 Prior POC 4158
Range Projections and Key Levels (ES) June 2023 (M) Contract
HOD ATR Range Projection: 4182; LOD ATR Range Projection: 4115; 3 Day Central Pivot: 4170; 3 Day Cycle Target: 4180; 10 Day Average True Range 42; VIX: 17
Nasdaq 100 (NQ)
Prior Session was Cycle Day 3 (CD3): Markets declined below their CD1 Low overnight. Since markets opened the day session below their CD1 Low we knew that we had good odds of rallying back above and they did, fulfilling Positive 3-Day Cycle Statistic, only to be followed by a new decline and a late day rally. Prior range was 175 handles on 529k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 12977. There is room for the decline to continue, unless the late day rally was just an early start of the rally. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 13090, THEN initial upside estimate targets 13165– 13185 zone.
Bear Scenario: IF Bears sustains offer below 13090, THEN initial downside estimate targets 13005 – 13000 zone.
PVA High Edge = 13160 PVA Low Edge = 13060 Prior POC = 13138
Range Projections and Key Levels (NQ) June 2022 (M) Contract
HOD ATR Range Projection: 13196; LOD ATR Range Projection: 12917; 3 Day Central Pivot: 13146; 3 Day Cycle Target: 13215; 10 Day Average True Range: 190; 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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