S&P 500 futures (SPX) started the night off more than 3%, before paring losses to 1.5%, as the choppy trading continues following Thursday’s brutal selloff and Friday’s partial rebound.
Source: Seeking Alpha https://seekingalpha.com/
8:30 Empire State Mfg Survey
11:00 Fed’s Kaplan: “The Economic Impact of Covid-19 and How the Country Will Move Forward.”
4:00 PM Treasury International Capital
S&P 500 (ES)
**Written at 10 pm Sunday Night for Monday’s Trading
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price declined exceeding Average Decline and Violation Levels securing this cycle’s low. Late session bounce settled price near mid-zone.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is currently trading lower pre-RTH testing the Cycle Day 1 Low (2971). Today we have two scenarios to consider:
Bull Scenario: IF Bulls hold bid above 2971, THEN initial upside estimate targets 3010 – 3020 zone
Bear Scenario: IF Bears hold offer below 2971, THEN initial downside estimate targets 2956 – 2943 zone.
P -VA High = 3044 P – VA Low = 2992 P – POC = 3010
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3036; LOD ATR Range Projection: 2930; 3 Day Central Pivot: 3089; 3 Day Cycle Target: 3056; 10 Day Average True Range 67; VIX: 42
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price is testing Cycle Day 1 Low (9481.75) following sharp decline in prior session. Today we have two scenarios to consider:
P – VA High = 9725 P – VA Low = 9533 P – POC = 9617
Bull Scenario: IF Bulls hold bid above 9482, THEN initial upside estimate targets 9592 – 9617 zone.
Bear Scenario: IF Bears hold offer below 9482, THEN initial downside estimate targets 9445 – 9372 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 9697; LOD ATR Range Projection: 9367; 3 Day Central Pivot: 9820; 3 Day Cycle Target: 9772; 10 Day Average True Range: 206; VIX: 42
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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