Futures were mixed overnight ahead of the Fed’s first economic projections of 2020 – due out at 2 p.m. ET. Nasdaq futures climbed 0.3%, while the Dow and S&P fell as much as 0.4%, reflecting a similar trade on Tuesday that saw a shift back into Big Tech.
Source: Seeking Alpha https://seekingalpha.com/
8:30 Consumer Price Index
10:00 Atlanta Fed’s Business Inflation Expectations
10:30 EIA Petroleum Inventories
2:00 PM FOMC Announcement
2:00 PM Treasury Budget
2:30 PM Chairman Press Conference
S&P 500 (ES)
***Written 7 pm Tuesday evening for Wednesday’s trading with contribution to https://mrtopstep.com/the-opening-print/
Tuesday’s Session was Cycle Day 1 (CD1): Session unfolded as a “normal” CD1 with price declining during GLOBEX Session fulfilling 3205, CD1 Average Decline. Low (3190.75) was established early during the RTH Session, providing a solid foundation from which to stage this cycle’s rally. Initial range objectives (3217) have been fulfilled, though there still remains ample room for continuation rally.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Having closed at mid-range of CD1, we then have Two Scenarios to consider.
1.) Price continues higher clearing and converting 3217, targeting 3231 – 3235 3 Day Cycle Rally Target.
2.) Price fails to sustain bid above 3217, violates and converts 3200 to lower resistance, opening the potential for a retest of CD1 Low (3190.75). Failure to successfully hold opens trap door targeting 3185 – 3175, CD2 Violation Zone.
P -VA High = 3214 P – VA Low = 3197 P – POC = 3210
Range Projections and Key Levels (ES) June 2020 (M) Contract
HOD ATR Range Projection: 3243; LOD ATR Range Projection: 3177; 3 Day Central Pivot: 3197; 3 Day Cycle Target: 3224; 10 Day Average True Range 49.78; VIX: 27
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is trading near all-time -highs following a normal Cycle Day 1 Decline securing this cycle’s low (9811.25). Three-Day Cycle Target measures 10040.
P – VA High = 10005 P – VA Low = 9890 P – POC = 9965
Bull Scenario: IF Bulls hold bid above 10005, THEN initial upside estimate targets 10027 – 10040 zone.
Bear Scenario: IF Bears hold offer below 10005, THEN initial downside estimate targets 9980 – 9965 zone.
Range Projections and Key Levels (NQ) June 2020 (M) Contract
HOD ATR Range Projection: 9984; LOD ATR Range Projection: 9832; 3 Day Central Pivot: 9842; 3 Day Cycle Target: 10040; 10 Day Average True Range: 173; VIX: 27
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
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