Stock futures are mixed during overnight trade as concerns mount over a V-shaped economic recovery and economists warn that the government and Fed will need to provide additional stimulus.
Source: Seeking Alpha https://seekingalpha.com/
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Price across indexes are mixed during GLOBEX Session with Asia & Euro in negative territory, while US Markets are holding marginal gains.
***IMPORTANT >>> IF preset $risk parameters have been exceeded in your individual trade plan, THEN simply stand-aside or trade in simulation-mode until trade risk can properly be managed.
We’ll keep the “HIGH SURF WARNING FLAG” posted as volatility remains elevated, with VIX 46 and ATR (10) 128 handles. Average Rotation: 25 handles.
Tuesday’s Session was Cycle Day 2 (CD2): Bullish Open Gap propelled price higher to the approximately 50% retracement zone from daily “peak–to-trough”, at which time price oscillated widely throughout the session. Failure to hold 2710, which was our stated Key “Line-In-Sand” price level, opened the trap-door for afternoon decline, as sellers took profits and most likely established newly minted short positions.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): 3 Day Cycle Objectives have already been fulfilled and exceeded. Price is trading above CD2 RTH Low (2634.75). Downside Violation Levels measure: 2610…2601 – 2588.25 zone. IF price holds prior low, THEN initial upside objective measures 2670 – 2680 zone
We’ll view today as a “wild-card” day with Positive 3 Day Cycle Statistic in-place and currently balanced; Price could move either direction.
PVA High Edge = 2740 PVA Low Edge = 2680 Prior POC = 2730
Bull Scenario: IF Bulls hold bid above 2640, THEN initial upside estimate targets 2670 – 2680 zone.
Bear Scenario: IF Bears hold offer below 2640, THEN initial downside estimate targets 2630 – 2620 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price is holding bid above prior low (7948) in relative quiet overnight trade. Initial boundaries measure 8140 – 7950.
PVA High Edge = 8232 PVA Low Edge = 8048 Prior POC = 8140
Bull Scenario: IF Bulls hold bid above 8060, THEN initial upside estimate targets 8120 – 8140 zone.
Bear Scenario: IF Bears hold offer below 8060, THEN initial downside estimate targets 8000 – 7950 zone.
Range Projections and Key Levels (NQ) June 2020 (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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