In the red for most of the night, S&P 500 futures have pared most of their losses to trade near the starting line ahead of some important economic data.
Source: Seeking Alpha https://seekingalpha.com/
8:30 Durable Goods
8:30 Initial Jobless Claims
8:30 International trade in goods
8:30 Retail Inventories (Advance)
8:30 Wholesale Inventories (Advance)
8:30 GDP Q1
8:30 Corporate profits
9:30 Fed’s Kaplan: “The World Economy Transformed”
10:30 EIA Natural Gas Inventory
Prior Session was Cycle Day 3 (CD3): Price failed to expand its positive cycle rally and sharply reversed direction lower, as aggressive long liquidation type selling took hold driving price down to 3027 target level.
…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 3048, which has been fulfilled during prior session. Having traded below prior low (3019.75) briefly during GLOBEX, currently above this level, we then have two scenarios to consider.
1.) Price sustains a bid above 3050, targeting 3070 – 3085 zone.
2.) Price sustains an offer below 3050 targeting 3020 – 3005 zone.
P-VA High = 3072 P-VA Low = 3021 P-POC = 3050
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3116; LOD ATR Range Projection: 2971; 3 Day Central Pivot: 3085; 10 Day Average True Range 82; VIX: 35
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Price trade below CD3 Low during prior session fulfilling 9994 CD1 Average Decline. This leads us to two scenarios to consider for today’s trading:
P-VA High = 10100 P-VA Low = 9936 P-POC = 9982
Bull Scenario: IF Bulls hold bid above 9982, THEN initial upside estimate targets 10063 – 10093 zone.
Bear Scenario: IF Bears hold offer below 9982, THEN initial downside estimate targets 9930 – 9885 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 10206; LOD ATR Range Projection: 9780; 3 Day Central Pivot: 10081; 10 Day Average True Range: 242; VIX: 35
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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