Futures are kicking off a packed session in the red, with contracts tied to the Dow, S&P 500 and Nasdaq down about 1%
Q2 GDP figures today will likely show an annualized contraction of 34.1% last quarter, while the latest weekly unemployment claims are also expected to show an increase to 1.45M, before enhanced federal benefits expire on Saturday.
8:30 GDP Q2
8:30 Initial Jobless Claims
10:30 EIA Natural Gas Inventory
S&P 500 (ES)
Prior Session was Cycle Day 1 (CD1): Early session decline established CD1 Low (3204.25) first. When this scenario occurs, price typically rallies throughout the session. This is exactly what unfolded pushing price to RTH Range objectives. Range was 52.75 on 1.1M contracts traded.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price has given up majority of prior session’s gains, as 3213 key support was yet again tested. 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 = 3256 P – VA Low = 3232 P – POC = 3248
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3240; LOD ATR Range Projection: 3222; 3 Day Central Pivot: 3228; 3 Day Cycle Target: 3266; 10 Day Average True Range 35; VIX: 26
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)… Price has relinquished prior session’s gains, successfully testing CD1 Low (10512.25). We have two scenarios to consider for today’s trading:
P – VA High = 10650 P – VA Low = 10585 P – POC = 10628
Bull Scenario: IF Bulls sustain a bid above 10560, THEN initial upside estimate targets 10595 – 10615 zone.
Bear Scenario: IF Bears sustain an offer below 10560, THEN initial downside estimate targets 10530 – 10500 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 10738; LOD ATR Range Projection: 10464; 3 Day Central Pivot: 10612; 3 Day Cycle Target: 10740; 10 Day Average True Range: 226; 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
IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone.
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