Markets (Top Stories)
Debt talks appear to be nearing the end amid reports that a potential deal would raise the U.S. government’s $31.4T debt ceiling and limit spending on most items for two years. A deal is expected to be hammered out by today afternoon, U.S. Representative Kevin Hern (R-Oklahoma), who leads the largest Republican caucus, said.
Source: http://seekingalpha.com
Economic Calendar
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price declined establishing new cycle low at 4133 handle. Prior range was 52 handles on 1.856M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for CD2 is consolidation, although today is a critical day as the Debt Clock is ticking for a DC agreement. Any hint of a resolution may propel prices toward the 4200 strike. Also, Memorial Holiday weekend is on deck, so traders will be looking to square positions. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4175, initially targets 4195 – 4205 zone.
Bear Scenario: Price sustains an offer below 4175, initially targets 4155 – 4150 zone.
PVA High Edge = 4165 PVA Low Edge = 4145 Prior POC 4160
Range Projections and Key Levels (ES) June 2023 (M) Contract
HOD ATR Range Projection: 4193; LOD ATR Range Projection: 4122; 3 Day Central Pivot: 4160; 3 Day Cycle Target: 4203; 10 Day Average True Range 47; VIX: 18
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price declined establishing new cycle low at 13803 handle. Prior range was 228 handles on 806k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Normal for CD2 is consolidation, although today is a critical day as the Debt Clock is ticking for a DC agreement. Any hint of a resolution may propel prices higher. Also, Memorial Holiday weekend is on deck, so traders will be looking to square positions. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 14030, initially targets 14150 – 14165 zone.
Bear Scenario: Price sustains an offer below 14030, initially targets 13950 – 13940 zone.
PVA High Edge = 14014 PVA Low Edge = 13892 Prior POC 13990
Range Projections and Key Levels (NQ) June 2022 (M) Contract
HOD ATR Range Projection: 14139; LOD ATR Range Projection: 13828; 3 Day Central Pivot: 13832; 3 Day Cycle Target: 14073; 10 Day Average True Range: 215; VIX: 18
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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