U.S. stock futures were muted again overnight following a flat session for Wall Street on Tuesday. The “sit tight” mentality is being reflected in the broader market as traders continue to ponder inflation risks, rebounding consumer demand, supply bottlenecks and red-hot manufacturing. Some other catalysts might be seen in the coming sessions, when the Labor Department releases its jobs report on Friday, before a high-profile FOMC meeting set for in mid-June.
8:15 ADP Jobs Report
8:55 Redbook Chain Store Sales
12:00 PM Fed’s Evans: U.S. Monetary Policy
12:00 PM Fed’s Harker: “Entrepreneurship and Minority-Owned Business”
12:00 PM Fed’s Harker: U.S. Economic Outlook
2:00 PM Fed’s Beige Book
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Prior Session was Cycle Day 2 (CD2): Following post-holiday ramp-up during GLOBEX fulfilling 3 Day Cycle Target (4224), a normal CD2 unfolded during RTH Session, as price consolidated throughout the day. Prior range was 33.75 handles on 1.224M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Official start of summer-trading has begun, with traders/investors awaiting Friday’s Jobs Report for the next potential catalyst. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4210, initially targets 4220 – 4225 zone.
2.) Price sustains an offer below 4190, initially targets 4180 – 4175 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 4210 PVA Low Edge = 4196 Prior POC = 4205
Range Projections and Key Levels (ES) June 2021 (M) Contract
HOD ATR Range Projection: 4226; LOD ATR Range Projection: 4168; 3 Day Central Pivot: 4204; 3 Day Cycle Target: 4224; 10 Day Average True Range 35; VIX: 18
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price is currently trading within prior value area following a wide range day post-holiday in which 3 Day Cycle Target (13751) was fulfilled. Prior range was 181 handles on 395k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 13709 PVA Low Edge = 13627 Prior POC = 13650
Bull Scenario: IF Bulls sustain a bid above 13650, THEN initial upside estimate targets 13700 – 13720 zone.
Bear Scenario: IF Bears sustain an offer below 13650, THEN initial downside estimate targets 13590 – 13550 zone.
Range Projections and Key Levels (NQ) June 2021 (M) Contract
HOD ATR Range Projection: 13779; LOD ATR Range Projection: 13500; 3 Day Central Pivot: 13684; 3 Day Cycle Target: 13751; 10 Day Average True Range: 162; VIX: 18
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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