Markets
The April market selloff is continuing apace with China stocks falling to their lowest level in two years on Monday. Overnight, the Shanghai Composite plunged over 5% for its biggest one-day drop since February 2020, while WTI crude oil slipped more than 4% to below $100 on demand concerns.
Source: SeekingAlpha.com
Economic Calendar
8:30 Chicago Fed National Activity Index
10:30 Dallas Fed Manufacturing Survey
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 2 (CD2): End of week selling hit the markets hard, closing on the lows of the week. Market of Close Sell Imbalance $5.8 Billion capped the selling sentiment. Range was 146 handles on 1.955M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Markets are on the verge of a failed 3-Day Cycle should they fail to recover CD1 Low (4380). Bulls have quite the uphill battle. Traders will be looking for some stabilization this week to squelch the negative sentiment. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains bid above 4248, initially targets 4265 – 4270 zone.
Bear Scenario: Price sustains offer below 4248, initially targets 4223 – 4218 zone.
PVA High Edge = 4392 PVA Low Edge = 4298 Prior POC = 4338
Range Projections and Key Levels (ES) June 2022 (M) Contract
HOD ATR Range Projection: 4302; LOD ATR Range Projection: 4183; 3 Day Central Pivot: 4395; 3 Day Cycle Target: 4416; 10 Day Average True Range 84; VIX: 29
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price is on the verge of a failed 3-Day Cycle unless CD1 Low is recovered. That’s a tall order indeed. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 13297, THEN initial upside estimate targets 13360 – 13400 zone.
Bear Scenario: IF Bears sustains offer below 13297, THEN initial downside estimate targets 13200 – 13180 zone.
PVA High Edge = 14266 PVA Low Edge = 14043 Prior POC = 14147
Range Projections and Key Levels (NQ) June 2022 (M) Contract
HOD ATR Range Projection: 13778; LOD ATR Range Projection: 13478; 3 Day Central Pivot: 13820; 3 Day Cycle Target: 14226; 10 Day Average True Range: 403; VIX: 29
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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