From open to close, the S&P 500 Index (CASH: SPX) (ETF: SPY) (FUTURE: /ES) ended lower 95.38 (2.12%). (spotgamma)
The Federal Reserve Chair Jerome Powell “blessed a half-point interest-rate hike next month and signaled support for further aggressive tightening to curb inflation by noting that he saw merit in ‘front-end loading’ policy moves,” per Bloomberg.
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Prior Session was Cycle Day 1 (CD1): Early strength tested CD1 Penetration Levels at which time failed to hold bid and reversed. Selling accelerated throughout the day closing in lower quartile of 129 handle range. Prior range was 129 handles on 1.650M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for a Cycle Day 2 is for some ‘back n fill’ consolidation activity to balance previous selling. CD1 Low is marked at 4380, so price stabilization is necessary near this level. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4380, initially targets 4400 – 4410 zone.
Bear Scenario: Price sustains an offer below 4380, initially targets 4370 – 4365 zone.
PVA High Edge = 4477 PVA Low Edge = 4380 Prior POC = 4390
Range Projections and Key Levels (ES) June 2022 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Given the sharp sell-off in prior session, today we’ll be looking for a CD2 “normal” for price to stabilize near CD1 Low (13668). Prior range was 616 handles on 678k contracts traded. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustain a bid above 13668, THEN initial upside estimate targets 13765 – 13780 zone.
Bear Scenario: IF Bears sustain an offer below 13668, THEN initial downside estimate targets 13620 – 13590 zone.
PVA High Edge = 14109 PVA Low Edge = 13680 Prior POC = 13718
Range Projections and Key Levels (NQ) June 2022 (M) 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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