Escalating tensions between the world’s two largest economies saw S&P 500 futures fall 1% to start the week, while European stocks tumbled as investors returned from a May Day break.
Source: Seeking Alpha https://seekingalpha.com/
Stock futures are negative by 1.0% plus during overnight trade action
10:00 Factory Orders
12:30 PM TD Ameritrade IMX
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Prior Session was Cycle Day 1 (CD1): Normal decline unfolded as price closed near session lows. Cycle context says that when this scenario occurs, expectation is for follow-through into next session targeting CD2 Violation Levels, which have been fulfilled during GLOBEX Session.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Having closed low within the range, we have two scenarios: 1.) Violation of CD1 Low (2811.75), extending, targeting CD2 Violation Level (2797.50). 2.) Price holds CD1 Low (2811.75), pushing higher on the recovery rally targeting 2830 – 2840 zone.
P – VA High = 2845 P – VA Low = 2812 P – POC = 2823
Bull Scenario: IF Bulls hold bid above 2812, THEN initial upside estimate targets 2830 – 2840 zone
Bear Scenario: IF Bears hold offer below 2812, THEN initial downside estimate targets 2780 – 2770 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 2850; LOD ATR Range Projection: 2738; 3 Day Central Pivot: 2890; 3 Day Cycle Target: 2842; 10 Day Average True Range 72.00; VIX: 39.39
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price has violated CD1 Low (8672) and has fulfilled 8635 CD2 Violation Level during GLOBEX Session. Price will need to recover CD1 Low to stem further weakness.
P – VA High = 8852 P – VA Low = 8718 P – POC = 8825
Bull Scenario: IF Bulls hold bid above 8672, THEN initial upside estimate targets 8755 – 8775 zone.
Bear Scenario: IF Bears hold offer below 8672, THEN initial downside estimate targets 8595 – 8570 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 8810; LOD ATR Range Projection: 8442; 3 Day Central Pivot: 8890; 3 Day Cycle Target: 8750; 10 Day Average True Range: 238; VIX: 39.39
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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