Markets
U.S. stocks lost ground during yesterday’s session, while futures slid another 2% overnight, as investors took profits at the close of the S&P 500’s best month since 1987.
Apple’s (NASDAQ:AAPL) failure to give guidance and plans from Amazon (NASDAQ:AMZN) to spend all of its $4B in profit from Q2 sparked uncertainty over the reach of the coronavirus pandemic.
The downbeat note was accentuated by another 3.8M new jobless claims and the steepest decline in monthly U.S. consumer spending tracing back to 1959.
U.S. stock index futures are trading down 2 – 2.5% as an earnings parade makes its way down Wall Street
Source: Seeking Alpha https://seekingalpha.com/
Economic Calendar https://www.investing.com/economic-calendar/
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
1:00 PM Baker-Hughes Rig Count
S&P 500
Prior Session was Cycle Day 3 (CD3): Price tested and was rejected from Penetration Levels, at which time the decline began and continued throughout the session into closing bell.
…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.
Price decline which began from CD3 high has continued into today’s session fulfilling (2849) CD1 Average Decline. Price momentum has shifted decided bearish with further downside targets measuring 2819 – 2803 zone.
P-VA High = 2913 P-VA Low = 2888 P-POC = 2908
Bull Scenario: IF Bulls hold bid above 2850, THEN initial upside estimate targets 2865 – 2875 zone
Bear Scenario: IF Bears hold offer below 2850, THEN initial downside estimate targets 2830 – 2820 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 2892; LOD ATR Range Projection: 2819; 3 Day Central Pivot: 2903; 3 Day Cycle Target: 2939; 10 Day Average True Range 68; VIX: 38.50
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Average Decline Objective (8801.50) has been fulfilled during overnight trade as Tech earnings weighting heavily on price action.
P-VA High = 9008 P-VA Low = 8914 P-POC = 8980
Bull Scenario: IF Bulls hold bid above 8800, THEN initial upside estimate targets 8830 – 8845 zone.
Bear Scenario: IF Bears hold offer below 8800, THEN initial downside estimate targets 8750 – 8730 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 8920; LOD ATR Range Projection: 8667; 3 Day Central Pivot: 8900; 3 Day Cycle Target: 8920; 10 Day Average True Range: 222; VIX: 38.50
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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