S&P 500 futures are down another 0.5% ahead of Memorial Day weekend with the latest tensions between the U.S. and China on display.
Source: Seeking Alpha https://seekingalpha.com/
8:30 Housing Starts
8:55 Redbook Chain Store Sales
10:00 E-Commerce Retail Sales
10:00 Jerome Powell: “The Quarterly CARES Act Report to Congress”
2:00 Fed’s Rosengren Speech
Prior Session was Cycle Day 3 (CD3): We stated in prior DTS Briefing 05.21.20: ” Having fulfilled cycle objectives, bullish bias remains intact as additional back and fill may continue. We’ll mark today as a “wild-card” with wide range of price level potential.” Session unfolded pretty much on script as price consolidated, albeit with a slight downward skew.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Normal for CD1 decline is unfolding during GLOBEX Session as price has violated Prior Low (2933) fulfilling and extending beyond 2918 CD1 Violation Level.
Objective of Cycle Day 1 is to probe for a “secure low” from which to start the next cycle rally. Currently that low is 2903.75.
P-VA High = 2957 P-VA Low = 2942 P-POC = 2948
Bull Scenario: IF Bulls hold bid above 2925, THEN initial upside estimate targets 2930 – 2940 zone
Bear Scenario: IF Bears hold offer below 2925, THEN initial downside estimate targets 2915 – 2910 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 2956; LOD ATR Range Projection: 2900; 3 Day Central Pivot: 2845; 3 Day Cycle Target: 2935; 10 Day Average True Range 66.00; VIX: 30.00
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Normal CD1 Decline is unfolding as price violated CD3 Low (9352) during GLOBEX Session. CD1 Violation Level (9318) has been fulfilled with a low marked at 9140 as potential “secure-low”.
P-VA High = 9454 P-VA Low = 9386 P-POC = 9414
Bull Scenario: IF Bulls hold bid above 9298, THEN initial upside estimate targets 9323 – 9343 zone.
Bear Scenario: IF Bears hold offer below 9298, THEN initial downside estimate targets 9285 – 9275 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 9417; LOD ATR Range Projection: 9233; 3 Day Central Pivot: 9387; 3 Day Cycle Target: 9322; 10 Day Average True Range: 206; VIX: 30.00
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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