In Europe, at midday, London -0.8%. Paris +0.1%. Frankfurt -0.3%.
Futures at 6:20, Dow -0.6%. S&P -0.5%. Nasdaq -0.3%. Crude -0.3% to $66.66. Gold -0.5% to $1302.10. Bitcoin -0.7% to $6591.
Ten-year Treasury Yield -2 bps to 2.92%
8:30 Empire State Mfg Survey
9:15 Industrial Production
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
4:00 PM Treasury International Capital
S&P 500
Today is Cycle Day 3 (CD3)…Price has failed to clear above recent resistance zone (2792 – 2795) and as such is trading lower, testing 2772 pivot support in overnight trade. Bulls will need to hold above otherwise further weakness would be anticipated. Options Expiry may have an influence on today’s trading.
Market Bias: Bullish
CD3 Range High = 2794.50 CD3 Range Low = 2766.00 CD3 Range Avg = 22.50
Scenario 1: IF price holds above 2772 and converts 2778.50 to support, THEN upside targets 2788 handle.
Scenario 2: IF price violates 2782 handle, THEN downside targets 2772 pivot support.
Range Projections and Key Levels (ES) September (U) Contract
HOD ATR Range Projection: 2789.50; LOD ATR Range Projection: 2771.00; Cycle Day 1 Low: 2739.00; 3 Day Central Pivot: 2740.00; 3 Day Cycle Target: 2782.00; 10 Day Average True Range 17.19; VIX: 12.55
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Recent strength in technology shares this week has pushed NQ to all-time highs. Currently in overnight trade price is trading below prior close (7311.75) holding above 7274.50 Initial Balance Support.
Market Bias: Bullish
CD3 Range High = 7333.00 CD3 Range Low = 7267.50 CD3 Range Avg = 51.00
Scenario 1: IF price clears and converts 7312 handle, THEN upside expansion targets 7333 – 7353 zone.
Scenario 2: IF price violates and converts 7274 handle to lower resistance, THEN downside targets 7256 – 7243 zone.
Range Projections and Key Levels (NQ) September (U) Contract
HOD ATR Range Projection: 7352.00; LOD ATR Range Projection: 7249.00; Cycle Day 1 Low: 7138.50; 3 Day Central Pivot: 7249.75; 3 Day Cycle Target: 7200.50; 10 Day Average True Range: 69.50; VIX: 12.55
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.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone.
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CFTC RULE 4.41 –HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN