Tech stocks got hammered again on Wednesday after the closely-watched Consumer Price Index soared 8.3% in April, which was more than the 8.1% estimate and close to the highest level in more than 40 years
8:30 Initial Jobless Claims
8:30 Producer Price Index
10:30 EIA Natural Gas Inventory
1:00 PM Results of $22B, 30-Year Note Auction
4:00 PM Fed’s Daly Speech
4:30 PM Fed Balance Sheet
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Prior Session was Cycle Day 3 (CD3): Market’s fulfilled 3-day Cycle Statistic as well as meeting target objectives before starting the decline throughout this session. Prior range was 127 handles on 2.103M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Today begins a new cycle, with the Average Decline measuring 3943 which was fulfilled during prior session. Market has yet to find a secure bottom, as every rally attempt is thwarted by “Sell The F’ing Rally” (STFR) crowd. Daily margin calls persist as each sector fails to sustain a lasting bid. Bulls must recover 3950 at minimum to squelch the current selling-spree. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 3950, initially targets 3972 – 3985 zone.
Bear Scenario: Price sustains an offer below 3950, initially targets 3906 – 3895 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
PVA High Edge = 4018 PVA Low Edge = 3936 Prior POC = 3953
Range Projections and Key Levels (ES) June 2022 (M) Contract
HOD ATR Range Projection: 4022; LOD ATR Range Projection: 3823; 3 Day Central Pivot: 3998; 3 Day Cycle Target: 3970; 10 Day Average True Range; 130; VIX: 34
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Average Decline for CD1 measures 12052 for this cycle day which has been fulfilled during prior session. Price is currently trading below PL (11938) as Implied Volatility (IV) remains elevated. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustain a bid above 11938, THEN initial upside estimate targets 12052 – 12075 zone.
Bear Scenario: IF Bears sustain an offer below 11938, THEN initial downside estimate targets 11813– 11792 zone.
PVA High Edge = 12458 PVA Low Edge = 12675 Prior POC = 12803
Range Projections and Key Levels (NQ) June 2022 (M) Contract
HOD ATR Range Projection: 12863; LOD ATR Range Projection: 12102; 3 Day Central Pivot: 12274; 3 Day Cycle Target: 12310; 10 Day Average True Range: 530; VIX: 34
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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