Markets
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
10:00 Existing Home Sales
10:30 EIA Petroleum Inventories
Source: https://www.investing.com/economic-calendar/
S&P 500 (ES)
***Written 8 pm Tuesday evening for Wednesday’s trading for contribution to Mr. TopStep’s Opening Print Publication.
Tuesday’s Session was Cycle Day 1 (CD1): Early price gap strength pushed price to CD1 Penetration Levels where resistance developed, stemming further advance. Consolidation was the theme on this day following a trend up, which capped the prior Positive 3 Day Cycle. Price did finally produce a decline (as expected on CD1) late in session. Range was 34 handles with 1.4M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Late day sell-down in the prior session established a CD1 Low (3239.25) before snapping back higher into settlement. We then have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3240, initially targeting 3255 – 3260 zone.
2.) Price sustains an offer below 3240, initially targeting 3235 – 3230 zone.
P -VA High = 3269 P – VA Low = 3255 P – POC = 3265
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3297; LOD ATR Range Projection: 3210; 3 Day Central Pivot: 3232; 3 Day Cycle Target: 3297; 10 Day Average True Range 48; VIX: 25
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)… Price successfully tested Cycle Day 1 Low (10784.75) during GLOBEX Session and has rallied pre-RTH. We have two scenarios to consider for today’s trading:
P – VA High = 10953 P – VA Low = 10835 P – POC = 10900
Bull Scenario: IF Bulls sustain a bid above 10785, THEN initial upside estimate targets 10850 – 10900 zone.
Bear Scenario: IF Bears sustain an offer below 10785, THEN initial downside estimate targets 10710 – 10695 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 11096; LOD ATR Range Projection: 10630; 3 Day Central Pivot: 10775; 3 Day Cycle Target: 11126; 10 Day Average True Range: 253; VIX: 25
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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