U.S. stock futures moved higher in overnight trade following a stunning reversal on Monday as California rolled back its reopening plans, triggering worries about another coronavirus lockdown. Contracts tied to the Dow, S&P 500 and Nasdaq are all up 0.4% as investors get ready for earnings reports from some of the nation’s largest banks.
Source: Seeking Alpha https://seekingalpha.com/
S&P 500 (ES)
Prior Session was Cycle Day 1 (CD1): Early strength which pushed price to upper Penetration Levels during morning session, sharply reversed direction during afternoon session, closing near lows of day. Over an 80 handle reversal.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is currently trading higher, but only by about 20 handles from prior low 3140.50. Not particularly a sign of strength. Simply more of lack of additional sellers. We have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3155, initially targeting 3170- 3180 zone.
2.) Price sustains an offer below 3155 initially targeting 3140 – 3125 zone.
P -VA High = 3224 P – VA Low = 3187 P – POC = 3218
Range Projections and Key Levels (ES) September 2020 (U) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)… Price is currently trading above prior low (10561.50) but not a strong sign of strength. We have two scenarios to consider for today’s trading:
P – VA High = 11060 P – VA Low = 10840 P – POC = 10984
Bull Scenario: IF Bulls sustain a bid above 10625, THEN initial upside estimate targets 10695 – 10730 zone.
Bear Scenario: IF Bears sustain an offer below 10625, THEN initial downside estimate targets 10560 – 10530 zone.
Range Projections and Key Levels (NQ) September 2020 (U) 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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