U.S. equity futures are shaking off some of the concerns this morning, with the Nasdaq and S&P 500 up 0.4% and 0.1%, respectively, while the DJIA trails behind, down slightly at 0.1%. Higher-than-expected inflation data wasn’t the only thing to weigh on stocks, which greeted the Q2 earnings season with little fanfare.
10:00 Atlanta Fed’s Business Inflation Expectations
12:00 PM Powell Testifies on Semi-Annual Monetary Policy Report
1:30 PM Fed’s Kashkari Speech
2:00 PM Fed’s Beige Book
***New: PTG Trading Room Chat Log’s Link
***Written 8 pm Tuesday evening for Wednesday’s trading for contribution to MrTopStep’s “The Opening Print” publication.
Tuesday’s Session was Cycle Day 2 (CD2): Price consolidated as expected with an upward lean fulfilling 3 Day Cycle objectives. Late day test of 4360 handle was successful, which converts to a key reference level. Range was 27.25 handles on 1.223M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): 3-Day Cycle Objectives have been fulfilled, so we’ll mark today as a “wild-card” for direction. Key-reference level is marked at 4360 and is today’s Line-in-Sand (LIS) as heavy trade activity unfolded at this price point late in prior session. Potential test of the Cycle Day 1 Low (4341.75) may also be in the works. Estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 4360, initially targets 4375 – 4380 zone.
2.) Price sustains an offer below 4360, initially targets 4345 – 4340 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Cycle Statistics covering 12 years of recorded tracking history.
For more detailed information for both bullish and bearish projected targets, please visit: PTG 3 Day Cycle and/or reference the Cycle Spreadsheet below:
Link to access full Cycle Spreadsheet > > Cycle Day 3 (CD3)
PVA High Edge = 4375 PVA Low Edge = 4360 Prior POC = 4367
Range Projections and Key Levels (ES) Sept 2021 (U) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…3 Day Cycle objectives have been fulfilled, so we’ll mark today as a “wild-card”. Prior range was 200 handles on 502k contracts exchanged. As such, there are two estimated scenarios to consider for today’s trading.
PVA High Edge = 14936 PVA Low Edge = 14847 Prior POC = 14877
Bull Scenario: IF Bulls sustain a bid above 14850, THEN initial upside estimate targets 14920 – 14935 zone.
Bear Scenario: IF Bears sustain an offer below 14850, THEN initial downside estimate targets 14800 – 14795 zone.
Range Projections and Key Levels (NQ) Sept 2021 (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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