Stocks are on the rise alongside safe-haven assets ahead of an upcoming Fed meeting that will yield clues on what comes next for monetary policy. S&P 500 futures advanced 0.6% overnight.
8:30 Durable Goods
10:30 Dallas Fed Manufacturing Survey
S&P 500 (ES)
Prior Session was Cycle Day 1 (CD1): Normal CD1 Session as price continued its decline from CD3, establishing a CD1 Low (3191.50). Range was 47.50, matching the 10-day sequential average.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is trading near highs of GLOBEX Session, but still a distance from prior high (3239). We then have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3213, initially targeting 3228 – 3238 zone.
2.) Price sustains an offer below 3213, initially targeting 3203 – 3190 zone.
P -VA High = 3213 P – VA Low = 3201 P – POC = 3208
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3241; LOD ATR Range Projection: 3192; 3 Day Central Pivot: 3237; 3 Day Cycle Target: 3259; 10 Day Average True Range 47; VIX: 26
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)… Price is currently trading prior high (10597) and has fulfilled 10560 CD2 average rally objective. We have two scenarios to consider for today’s trading:
P – VA High = 10504 P – VA Low = 10413 P – POC = 10490
Bull Scenario: IF Bulls sustain a bid above 10535, THEN initial upside estimate targets 10565 – 10585 zone.
Bear Scenario: IF Bears sustain an offer below 10535, THEN initial downside estimate targets 10505 – 10490 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 10567; LOD ATR Range Projection: 10330; 3 Day Central Pivot: 10656; 3 Day Cycle Target: 10560; 10 Day Average True Range: 266; VIX: 26
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.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
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