The Fed’s moves to backstop credit markets, combined with a rebound in U.S. retail sales and prospects for COVID-19 treatment dexamethasone appear to have put a floor under equities (for now) as futures rose modestly in overnight trading.
Source: Seeking Alpha https://seekingalpha.com/
8:30 Housing Starts
10:30 EIA Petroleum Inventories
12:00 PM Powell Testify on Semi-Annual Monetary Policy Report
1:00 PM Results of $17B, 20-Year Bond Auction
4:00 PM Fed’s Mester: “The Fed’s Response to COVID-19”
***Written 8 pm Tuesday evening for Wednesday’s trading
Tuesday’s Session was Cycle Day 3 (CD3): Price fulfilled upside Cycle Targets (3155) early in the session. Remainder of day unfolded as a “Range-Runner” moving from extreme range high (3155) down to extreme range low (3065), ultimately settling mid-Value Zone.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Normal for a CD1 is for some magnitude decline with Average measuring 3070. Having closed at mid-range of CD3, we then have Two Scenarios to consider.
1.) Price sustains a bid above 3116, targeting 3135 – 3150 zone.
2.) Price sustains an offer below 3116 targeting 3090 – 3070 zone.
For more detailed information for both bullish and bearish projected targets, please visit: PTG 3 Day Cycle and/or reference the Cycle Spreadsheet below:
Link to access full Cycle Spreadsheet >> Cycle Day 1
P-VA High = 3128 P-VA Low = 3092 P-POC = 3106
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3180; LOD ATR Range Projection: 3041; 3 Day Central Pivot: 3152; 10 Day Average True Range 81; VIX: 33
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price has pushed above PH (10001.75) fulfilling 10026 Cycle Day 1 Penetration Level, following early touch of 9945 CD1 Average Decline objective . Line-in-Sand for NQ is 10000 roundie. Sustained bid above is bullish while sustained offer below is bearish.
P-VA High = 9966 P-VA Low = 9888 P-POC = 9958
Bull Scenario: IF Bulls hold bid above 10000, THEN initial upside estimate targets 10025 – 10035 zone.
Bear Scenario: IF Bears hold offer below 10000, THEN initial downside estimate targets 9970 – 9950 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 10165; LOD ATR Range Projection: 9742; 3 Day Central Pivot: 9742; 10 Day Average True Range: 238; VIX: 33
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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