Markets
“With most institutional investors believing this is a bear rally, but at risk of being forced to chase the trend if it continues, the risk is of bigger bubbles leading to larger shocks,” according to Bank of America. On that note, U.S. stock index futures are up nearly 1% ahead of the open, after a market drop yesterday that followed a big rally on Monday.
Source: Seeking Alpha https://seekingalpha.com/
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
10:00 Quarterly Services Report (Advance)
10:30 EIA Petroleum Inventories
1:00 PM Results of $20B, 20-Year Bond Auction
2:00 PM FOMC minutes
Source: https://www.investing.com/economic-calendar/
Source: https://www.investing.com/economic-calendar/eia-crude-oil-inventories-75
***New: PTG Trading Room Chat Log’s Link
S&P 500 >>>Written last night @ 7 pm to be published in today’s Mr. TopStep Opening Print.
Tuesday’s Session was Cycle Day 1 (CD1): Normal Session unfolded as price found early support from 2938 CD1 Average Decline Level, followed by a rally fulfilling 2875 CD1 Penetration Level. Late afternoon news headline sent price declining, closing price (2917) within 3 pts of session low (2814.25)
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Having closed near low of session we then have Two Scenarios to consider.
1.) Price continues lower targeting 2900 CD2 Violation Level. Failure to hold this level opens the trap door to the lower 2885 – 2880 zone.
2.) Price finds a supportive bid, preferably above CD1 Low (2914.25) securing; then rally, targeting 2940 – 2945 CD2 Average Cycle Range.
P -VA High = 2854 P – VA Low = 2937 P – POC = 2948
Bull Scenario: IF Bulls hold bid above 2945, THEN initial upside estimate targets 2955 – 2960 zone
Bear Scenario: IF Bears hold offer below 2945, THEN initial downside estimate targets 2935 – 2930 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 2970; LOD ATR Range Projection: 2893; 3 Day Central Pivot: 2900; 3 Day Cycle Target: 2941; 10 Day Average True Range 72.50; VIX: 29
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price has rallied during overnight trade securing its Cycle Low as well as fulfilling and surpassing today’s 3 Day Rally Objective of 9364. Currently, pre-RTH price is trading 9407 at upper end of prior VAH.
P – VA High = 9407 P – VA Low = 9337 P – POC = 9390
Bull Scenario: IF Bulls hold bid above 9380, THEN initial upside estimate targets 9407 – 9417 zone.
Bear Scenario: IF Bears hold offer below 9380, THEN initial downside estimate targets 9360 – 9350 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 9437; LOD ATR Range Projection: 9247; 3 Day Central Pivot: 9220; 3 Day Cycle Target: 9364; 10 Day Average True Range: 211; VIX: 29
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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