Markets
U.S. futures are trying to come back from a lackluster session on Thursday that was dampened by data showing 1.3M people filing for unemployment benefits last week. At the time of writing, Dow and S&P 500 futures are up 0.3%, though the Nasdaq is powering ahead by 1%.
Source: Seeking Alpha https://seekingalpha.com/
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
8:30 Housing Starts
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
Source: https://www.investing.com/economic-calendar/
S&P 500 (ES)
Prior Session was Cycle Day 1 (CD1): Low was established early in session as price successfully tested multiple times 3192 Line-in-Sand (LIS) outlined in prior DTS Briefing 7.16.20. Neutral Day unfolded as range was kept in-check at 21.75 handles.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Options Expiry today with price trading in a relatively narrow overnight range within prior session’s range. We have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3195, initially targeting 3212 – 3217 zone.
2.) Price sustains an offer below 3195 initially targeting 3185 – 3175 zone.
P -VA High = 3222 P – VA Low = 3205 P – POC = 3217
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3240; LOD ATR Range Projection: 3176; 3 Day Central Pivot: 3195; 3 Day Cycle Target: 3262; 10 Day Average True Range 52; VIX: 27
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)… Price is currently trading in the upper quartile of prior session’s range within 3 Day Central Pivot Zone (10590 – 10612). We have two scenarios to consider for today’s trading:
P – VA High = 10609 P – VA Low = 10525 P – POC = 10598
Bull Scenario: IF Bulls sustain a bid above 10590, THEN initial upside estimate targets 10635 – 10655 zone.
Bear Scenario: IF Bears sustain an offer below 10590, THEN initial downside estimate targets 10560 – 10530 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 10704; LOD ATR Range Projection: 10470; 3 Day Central Pivot: 10601; 3 Day Cycle Target: 10752; 10 Day Average True Range: 229; VIX: 27
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!
Good Trading…David
“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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