Stock index futures appear to be in wait-and-see mode, inching between gains and losses overnight, as hopes for a quick economic rebound are brought into question. “The path ahead is both highly uncertain and subject to significant downside risks,” Jerome Powell declared yesterday as the S&P 500 closed lower for the second day in a row.
Source: Seeking Alpha https://seekingalpha.com/
Prior Session was Cycle Day 3 (CD3): Early rally attempt failed to hold bid as sellers aggressively sold fulfilling lower CD3 Violation Targets. Failing to recover the CD1 Low (2889.75) creates a “failed” 3 Day Cycle. Only NQ was able to successfully produce a positive cycle statistic, before selling off.
…Transition from Cycle Day 3 to Cycle Day 1
P-VA High = 2845 P-VA Low = 2786 P-POC = 2810
Bull Scenario: IF Bulls hold bid above 2820, THEN initial upside estimate targets 2830 – 2845 zone
Bear Scenario: IF Bears hold offer below 2820, THEN initial downside estimate targets 2800 – 2785 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price is trading in a narrow range during overnight with a downward skew. Key Line-In-Sand (LIS) is marked 9040.
P-VA High = 9103 P-VA Low = 8890 P-POC = 8934
Bull Scenario: IF Bulls hold bid above 9040, THEN initial upside estimate targets 9070 – 9095 zone.
Bear Scenario: IF Bears hold offer below 9040, THEN initial downside estimate targets 8930 – 8900 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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