Tech stock love saw Nasdaq futures rise overnight, while Dow and S&P 500 futures inched lower, following a turnaround on Wednesday that saw all three indexes close back in the green.
Source: Seeking Alpha https://seekingalpha.com/
8:30 Initial Jobless Claims
10:00 Wholesale Trade
10:30 EIA Natural Gas Inventory
Sentiment also got a boost on Wednesday after St. Louis Fed President James Bullard said that the jobless rate could fall substantially by the end of 2020. It’s been quite a run for the unemployment rate, which was at a 50-year low of 3.5% just five months ago before spiking up to 14.7% in April (it currently stands at 11.1%).
S&P 500 (ES)
Prior Session was Cycle Day 1 (CD1): Price established a “secure” cycle low early in the session. When that scenario occurs, typically signals underlying strength evolving into rally which is exactly what unfolded, closing near session high.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2 (CD2): Price is continuing where it left off during prior session, with a sustained underlying bid, holding support within 3 Day Central Pivot Zone (3150 – 3155). We have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3160, initially targeting 3170 (ONH), then within Money Box Zone (3177 – 3182).
2.) Price sustains an offer below 3160 initially targeting 3150 – 3145 zone.
P -VA High = 3152 P – VA Low = 3130 P – POC = 3142
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3203; LOD ATR Range Projection: 3120; 3 Day Central Pivot: 3152; 3 Day Cycle Target: 3200; 10 Day Average True Range 50; VIX: 28
Nasdaq 100 (NQ)
Today is Cycle Day 2 (CD2)… Price has extended this cycle’s rally above 10673 (PH), into Money Box Zone (10719 – 10737). 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 10695, THEN initial upside estimate targets 10775 – 10784 zone.
Bear Scenario: IF Bears sustain an offer below 10695, THEN initial downside estimate targets 10675 – 10645 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 10840; LOD ATR Range Projection: 10528; 3 Day Central Pivot: 10570; 3 Day Cycle Target: 10775; 10 Day Average True Range: 194; VIX: 28
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
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