Stocks are continuing to sour following the steepest May selloff in nine years as DJIA futures begin the month down another 150 points and bonds rally, with the 10-year Treasury yield slipping a further 6 bps to 2.08%.
In Asia, Japan -0.9%. Hong Kong flat. China -0.3%. India +1.4%.
In Europe, at midday, London -0.4%. Paris -0.1%. Frankfurt -0.2%.
Futures at 6:20, Dow -0.6%. S&P -0.7%. Nasdaq -0.8%. Crude +1% to $54.01. Gold +0.7% to $1320.60. Bitcoin -2.2% to $8512.
Ten-year Treasury Yield -6 bps to 2.08%
Source: Seeking Alpha
Today is Cycle Day 2 (CD2)…Price has fulfilled its lower Violation Target (2732.50) from Cycle Day 1 Normal Decline. Bulls have their work cut-out to stem further selling and repel “Da Bears”. Recovery targets 2750 Cycle Day 1 Low.
CD2 Range High = 2761.25 CD2 Range Low = 2717.25 CD2 Range Avg = 30.00
Scenario 1: IF Bulls hold bid above 2738, THEN initial upside potential targets 2750 – 2755 zone.
Scenario 2: IF Bears hold offer below 2738, THEN initial downside objective targets 2732.50 CD2 Violation Level.
Range Projections and Key Levels (ES) June 2019 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)…Price has fulfilled its CD2 Average Violation Target at 7067.00. Bulls will need to hold price above this level to stem off further selling. Recovery targets 7129.25 Cycle Day 1 Low.
CD2 Range High = 7169.00 CD2 Range Low = 7008.00 CD2 Range Avg = 102.50
Scenario 1: IF Bulls hold bid above 7088, THEN initial upside potential targets 7124 – 7138 zone.
Scenario 2: IF Bears hold offer below 7088, THEN initial downside objective targets 7067 – 7053 zone.
Range Projections and Key Levels (NQ) June 2019 (M) Contract
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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