Markets (Top Stories)
Prepare for some volatility as investors head into the heart of earnings season, with Big Tech stepping up to the plate this afternoon. Alphabet (GOOG, GOOGL) and Microsoft (MSFT) are first in the batting order, but it remains to be seen whether they’ll manage a base hit or if investors will send them back to the dugout following the double-header. Today’s results are not the only ones on deck, with the lineup followed by Meta Platforms (META) tomorrow, and Amazon (AMZN) batting cleanup after the bell on Thursday.
Source: SeekingAlpha.com
Economic Calendar
10:00 Consumer Confidence
10:00 New Home Sales
10:00 Richmond Fed Mfg.
1:00 PM Results of $42B, 2-Year Note Auction
1:00 PM Money Supply
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 2 (CD2): Normal CD2 unfolded as price successfully tested both upper and lower CD1 range edges, only to settle back to mid value. Prior range was 30 handles on 1.285M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price continues in range bound structure between defined value 4165 – 4145 zone. Positive Cycle Statistic will be satisfied with price trading above CD1 Low (4135.25) during RTH. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4160, initially targets 4170 – 4175 zone.
Bear Scenario: Price sustains an offer below 4145, initially targets 4135 – 4130 zone.
PVA High Edge = 4162 PVA Low Edge = 4148 Prior POC = 4158
Range Projections and Key Levels (ES) June 2023 (M) Contract
HOD ATR Range Projection: 4170; LOD ATR Range Projection: 4118; 3 Day Central Pivot: 4152; 3 Day Cycle Target: 4182; 10 Day Average True Range 40; VIX: 17
Nasdaq 100 (NQ)
Prior Session was Cycle Day 2 (CD2): Normal CD2 unfolded as price successfully tested both upper and lower CD1 range edges, only to settle back to mid value. Prior range was 166 handles on 573k contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price continues in range bound structure between defined value 13110 – 13005 zone. Positive Cycle Statistic will be satisfied with price trading above CD1 Low (12982.50) during RTH. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 13110, THEN initial upside estimate targets 13180– 13200 zone.
Bear Scenario: IF Bears sustains offer below 13005, THEN initial downside estimate targets 12970 – 12960 zone.
PVA High Edge = 13076 PVA Low Edge = 12998 Prior POC = 13048
Range Projections and Key Levels (NQ) June 2023 (M) Contract
HOD ATR Range Projection: 13157; LOD ATR Range Projection: 12868; 3 Day Central Pivot: 13071; 3 Day Cycle Target: 13171; 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
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