Markets (Top Stories)
The U.S. economy is showing further resilience as GDP grew at a 2.4% annualized rate in Q2, almost a full percentage point stronger than the 1.5% expected. The growth was driven by robust consumer and business spending, while durable goods orders separately showed the fourth straight month of growth. A soft landing may be turning into the base case for strategists, but for those looking to hedge stock longs, BofA explains why it’s never been cheaper to buy protection.
Source: SeekingAlpha.com
Economic Calendar
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price declined, establishing a new cycle low at 4553. Prior range was 80 handles on 1.828M contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price has retraced approximately one-third of prior session’s afternoon decline, back to 5 day POC (4585). We’ll be anticipating a more normal CD2 “two-way” trade with plenty of upside/downside range to traverse to end the last week of July. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4585, initially targets 4600 – 4605 zone.
Bear Scenario: Price sustains an offer below 4585, initially targets 4565 – 4560 zone.
PVA High Edge = 4633 PVA Low Edge = 4586 Prior POC = 4619
Range Projections and Key Levels (ES) Sept 2023 (U) Contract
HOD ATR Range Projection: 4597; LOD ATR Range Projection: 4549; 3 Day Central Pivot: 4592; 3 Day Cycle Target: 4614; 10 Day Average True Range 39; VIX: 13
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1 (CD1): Normal CD1 as price declined, establishing a new cycle low at 15511. Prior range was 392 handles on 829k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price has retraced approximately one-half of prior session’s afternoon decline, so we’ll mark 15715 at today’s Line-in-sand (LIS). We’ll also be anticipating a more normal CD2 “two-way” trade with plenty of upside/downside range to traverse to end the last week of July. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 15715, initially targets 15785 – 15810 zone.
Bear Scenario: Price sustains an offer below 15715, initially targets 15625 – 15620 zone.
PVA High Edge = 15895 PVA Low Edge = 15709 Prior POC = 15832
Range Projections and Key Levels (NQ) Sept 2023 (U) Contract
HOD ATR Range Projection: 15787; LOD ATR Range Projection: 15475; 3 Day Central Pivot: 15654; 3 Day Cycle Target: 15807; 10 Day Average True Range: 241; VIX: 13
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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