Markets
In the latest bout of volatility, U.S. stock futures were nearly ‘limit-up’ at one point overnight after indexes slipped lower on Friday following the end of a record U.S. job growth streak. The energy sector has seen a chaotic last few days on reports of an oil production cut deal
Rally was seen overnight as Dow futures climbed 787 points, while S&P 500 and Nasdaq futures surged 3.85% respectively.
Crude futures opened the session Sunday night by falling 9.2% to $25.72 per barrel after a delayed OPEC+ meeting signaled that a production agreement between Saudi Arabia and Russia may not be as imminent as President Trump suggested last week.
Source: Seeking Alpha https://seekingalpha.com/
Economic Calendar https://www.investing.com/economic-calendar/
12:30 PM TD Ameritrade IMX
Markets are currently trading in positive territory pre-RTH
We’ll keep the “High Surf Warning” posted for the foreseeable future.
S&P 500
Friday’s Session was Cycle Day 3 (CD3): As this day is the official “end of cycle”. The expected action of the “BIG BOYZ” is to complete their selling of long contracts and to establish new short positions.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Objective for this cycle day is to “probe for a new secure low” from which to begin the next cycle’s rally. Three-fourths of the average decline (109 pts) expected from the high of CD3 has already occurred during prior session.
Bullish sentiment has propelled price from GLOBEX open price straight higher nearly 138 handles retracing approximately 75% from 2635 peak high. Upside cycle objectives have been exceeded as bulls have firm control and is theirs to lose.
P-VA High = 2499 P-VA Low = 2458 P-POC = 2474
Bull Scenario: IF Bulls hold bid above 2575, THEN initial upside estimate targets 2600 – 2610 zone
Bear Scenario: IF Bears hold offer below 2575, THEN initial downside estimate targets 2560 – 2550 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 2575; LOD ATR Range Projection: 2498; 3 Day Central Pivot: 2485; 3 Day Cycle Target: 2558; 10 Day Average True Range 119; VIX: 45.00
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Bullish sentiment has propelled price from GLOBEX open price straight higher nearly 446 handles retracing approximately 75% from 7995 peak high. Upside cycle objectives have been exceeded as bulls have firm control and is theirs to lose
P-VA High = 7588 P-VA Low = 7459 P-POC = 7514
Bull Scenario: IF Bulls hold bid above 7800, THEN initial upside estimate targets 7850 – 7870 zone.
Bear Scenario: IF Bears hold offer below 7800, THEN initial downside estimate targets 7770 – 7750 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 7795; LOD ATR Range Projection: 7612; 3 Day Central Pivot: 7545; 3 Day Cycle Target: 7730; 10 Day Average True Range: 342; VIX: 45
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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