Markets
Wall Street is looking to continue Tuesday’s rally as U.S. stock index futures point to gains of more than 1% at the open. Stocks surged yesterday on optimism about economies reopening and the potential development of a coronavirus vaccine, while sentiment also got a boost from the reopening of the NYSE’s famed trading floor.
Source: Seeking Alpha https://seekingalpha.com/
Economic Calendar
10:00 Richmond Fed Mfg.
10:00 State Street Investor Confidence Index
11:00 Survey of Business Uncertainty
11:30 Results of $20B, 2-Year FRN Auction
12:30 PM Fed’s Bullard Speech
1:00 PM Results of $45B, 5-Year Note Auction
2:00 PM Fed’s Beige Book
https://www.investing.com/economic-calendar/
S&P 500
Tuesday’s Session was Cycle Day 3 (CD3): This past Cycle fell within Memorial Day Holiday with a shortened Futures Session. This set up a “thin-to-win” (a-la Dboy) condition pushing price higher, fulfilling upside 3 Day Cycle Penetration Statistic.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Having closed low in the range but above key support at 2980.75, AND having fulfilled Average Decline Objective of 2993.50, we then have Two Scenarios to consider.
1.) Price continues lower targeting 2967 CD1 Violation Level. Failure to hold this level opens the trap door to the lower 2956 – 2950 3 Day Central Pivot Zone.
2.) Price finds a supportive bid, preferably above CD3 Low (2980.75) securing a low; then rally, targeting 3008 – 3018 zone. IF this zone is converted to “upper-support”, THEN further upside measures 3024 – 3030 ATR Penetration Zone.
P-VA High = 3013 P-VA Low = 2998 P-POC = 3008
Bull Scenario: IF Bulls hold bid above 3013, THEN initial upside estimate targets 3024 – 3030 zone
Bear Scenario: IF Bears hold offer below 3013, THEN initial downside estimate targets 3008 – 2998 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 3024; LOD ATR Range Projection: 2980; 3 Day Central Pivot: 2971; 3 Day Cycle Target: 3014; 10 Day Average True Range 55; VIX: 27.50
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price held the prior session low (9373) and has rallied during GLOBEX Session, retracing 50% of prior decline. Bulls will need to clear and convert High Volume Node (9508) to continue the current rally.
P-VA High = 9556 P-VA Low = 9423 P-POC = 9508
Bull Scenario: IF Bulls hold bid above 9484, THEN initial upside estimate targets 9502 – 9514 zone.
Bear Scenario: IF Bears hold offer below 9484, THEN initial downside estimate targets 9470 – 9455 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 9534; LOD ATR Range Projection: 9336; 3 Day Central Pivot: 9437; 3 Day Cycle Target: 9456; 10 Day Average True Range: 188; VIX: 27.50
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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