Tech is under more pressure today with Nasdaq futures down 1.1%, while contracts tied to the Dow and S&P 500 are off 0.4%, as tensions rise between Beijing and Washington. Another rebound of business activity across the eurozone didn’t help markets there as the Euro Stoxx 50 fell 1.6%.
Source: Seeking Alpha https://seekingalpha.com/
S&P 500 (ES)
Prior Session was Cycle Day 3 (CD3): Positive 3 Day Cycle as price pushed above CD2 24 hr high but failed to sustain a bid during GLOBEX Session. Price again attempted and failed to clear CD2 RTH high, at which time probabilities shifted in favor of a developing decline. Violation of key 3250 level accelerated the decline driving price down to lows of session. Range for session was 70.25 handles.
…Transition from Cycle Day 3 to Cycle Day 1
1.) Price sustains a bid above 3213, initially targeting 3223 – 3233 zone.
2.) Price sustains an offer below 3213, initially targeting 3200 – 3195 zone.
P -VA High = 3285 P – VA Low = 3228 P – POC = 3265
Range Projections and Key Levels (ES) September 2020 (U) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price failed to clear CD2 high increasing odds of a decline as a weak technology sector has come under increased selling pressure into earning season. Range for the session was 424 handles, two-thirds of the normalized 10-day average range. As such we have two scenarios to consider for today’s trading.
P – VA High = 10932 P – VA Low = 10588 P – POC = 10816
Bull Scenario: IF Bulls hold bid above 10515, THEN initial upside estimate targets 10565 – 10590 zone.
Bear Scenario: IF Bears hold offer below 10515, THEN initial downside estimate targets 10428 – 10372 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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