The latest stock party started in Asia overnight, where China’s Shanghai Composite jumped 5.7% to record its largest one-day gain since 2015. Over in Europe, the Euro Stoxx 50 climbed 2%, while S&P 500 futures are ahead by 1.3% in the U.S., building on a strong end to last week following an unexpectedly strong jobs report.
Source: Seeking Alpha https://seekingalpha.com/
S&P 500 (ES)
Prior Session was Cycle Day 1 (CD1): Pre-Holiday shortened session with most traders away from their trading stations had price drifting lower on sub-par volumes. Cycle Day 1 Low was established at 3105.75.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price opened GLOBEX with a higher gap and has continued to rally throughout the overnight session, currently trading near highs and at 3165 CD2 Penetration Level. We then have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3165, initially targeting 3172.75 (PH) with 3 Day Cycle Target 3182.
2.) Price sustains an offer below 3165 initially targeting 3156 – 3148 zone.
P -VA High = 3130 P – VA Low = 3115 P – POC = 3120
Range Projections and Key Levels (ES) September 2020 (U) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)… Price has rallied higher during GLOBEX Session, currently trading near overnight high and fulfilling 10478 CD2 Penetration Level. We have two scenarios to consider for today’s trading:
P – VA High = 10370 P – VA Low = 10333 P – POC = 10350
Bull Scenario: IF Bulls sustain a bid above 10478, THEN initial upside estimate targets 10505 upwards toward 10584 3 Day Cycle Target.
Bear Scenario: IF Bears sustain an offer below 10478, THEN initial downside estimate targets 10436 – 10420 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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