Markets
Optimism over the economy’s reopening appears to be supporting stock prices and the oil rally, as S&P 500 futures rose another 1% overnight and crude topped $25/bbl.
U.S. stock index futures are trading higher .05% – 1.0% during GLOBEX
Source: Seeking Alpha https://seekingalpha.com/
Economic Calendar https://www.investing.com/economic-calendar/
8:15 ADP Jobs Report
8:30 Treasury Refunding Quarterly Announcement
10:30 EIA Petroleum Inventories
1:30 PM Fed’s Bostic: “Federal Reserve’s Response to COVID-19”
S&P 500
Prior Session was Cycle Day 3 (CD3): Price rallied fulfilling 3 Day Cycle Objectives and extended to Penetration Levels before reversing direction late in the day closing near session low.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Having closed low within the range, momentum may take price lower to probe for a “secure-low” before the next rally can begin. Previous two sessions have seen strong buying which may not dissipate so easily.
Our Line-in-the-Sand has been 2850 recently, so we’ll keep it there for today’s session. IF price violates and converts to lower resistance, THEN lower target / buy zone is measured between 2830 – 2825. CD1 Average Decline measures 2766.25.
P-VA High = 2889 P-VA Low = 2860 P-POC = 2884
Bull Scenario: IF Bulls hold bid above 2850, THEN initial upside estimate targets 2880 – 2890 zone
Bear Scenario: IF Bears hold offer below 2850, THEN initial downside estimate targets 2830 – 2825 zone.
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 2903; LOD ATR Range Projection: 2826; 3 Day Central Pivot: 2835; 3 Day Cycle Target: 2874; 10 Day Average True Range 66; VIX: 32.25
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Shallow decline to secure low during overnight trade has lead to sharp rally higher testing prior high range levels near 9000 – 9010. Price has recover 3 Day Central Pivot Zone as bulls remain in-control.
P-VA High = 9000 P-VA Low = 8900 P-POC = 8950
Bull Scenario: IF Bulls hold bid above 8950, THEN initial upside estimate targets 9000 – 9020 zone.
Bear Scenario: IF Bears hold offer below 8950, THEN initial downside estimate targets 8920 – 8900 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 9087; LOD ATR Range Projection: 8800; 3 Day Central Pivot: 8800; 3 Day Cycle Target: 8955; 10 Day Average True Range: 223; VIX: 32.25
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
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