Equities appear to be starting on a tepid note, with futures largely unchanged for most of the night. Later in today’s session we’ll get minutes of the FOMC’s most recent monetary policy meeting, when the central bank signaled plans to keep rates close to zero for years.
Source: Seeking Alpha https://seekingalpha.com/
8:15 ADP Jobs Report
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
10:30 EIA Petroleum Inventories
2:00 PM FOMC minutes
S&P 500 (ES)
***Written 7 pm Tuesday evening for Wednesday’s trading and contribution to Mr. TopStep’s Opening Print Publication.
Tuesday’s Session was Cycle Day 1 (CD1): Shallow decline which fell short of the CD1 Average Decline was an early “tell” that bullish bias was well intact anticipating a strong session with Month & Quarter End respectively. The session fulfilled upside range projections with a Market on Close Buy Imbalance of $6 Billion.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Having fulfilled upside cycle objectives and expectation is for some “back n fill” trade action, we then have two scenarios to consider.
1.) Price sustains a bid above 3075, initially targeting 3090 – 3105 zone with 3 Day Cycle Target 3115.
2.) Price sustains an offer below 3075 initially targeting 3060 – 3050 zone.
P -VA High = 3075 P – VA Low = 3036 P – POC = 3065
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3090; LOD ATR Range Projection: 3040; 3 Day Central Pivot: 3040; 3 Day Cycle Target: 3115; 10 Day Average True Range 60; VIX: 31
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)… Price is consolidating at top end of prior session’s range. Today we have two scenarios to consider:
P – VA High = 10103 P – VA Low = 9977 P – POC = 10065
Bull Scenario: IF Bulls hold bid above 10103, THEN initial upside estimate targets 10130 – 10160 zone.
Bear Scenario: IF Bears hold offer below 10103, THEN initial downside estimate targets 10065 – 10035 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 10134; LOD ATR Range Projection: 9977; 3 Day Central Pivot: 9972; 3 Day Cycle Target: 10235; 10 Day Average True Range: 194; VIX: 31
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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