Markets
It doesn’t look like the S&P 500 is going to achieve a fresh record closing high this week as futures contracts tied to the benchmark slipped 0.4% in overnight action.
Source: Seeking Alpha https://seekingalpha.com/
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
8:30 Retail Sales
8:30 Productivity and Costs
9:15 Industrial Production
10:00 Business Inventories
10:00 Consumer Sentiment
10:00 Fed’s Kaplan Speech
1:00 PM Baker-Hughes Rig Count
Source: https://www.investing.com/economic-calendar/
S&P 500 (ES)
Prior Session was Cycle Day 3 (CD3): Price failed to clear and convert CD2 high (3382) and as such set up a decline, once key Line-In-Sand (3370) level was violated. Price declined fulfilling lower target zone as outlined in prior DTS 8.13.20 Briefing: “2.) Price sustains an offer below 3370, initially targeting 3360 – 3355 zone.” Range of 24.50 handles and 1.177M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Early overnight rally failed and as such price declined fulfilling 3355 CD1 Average Decline Objective. Today is Options Expiration, so expectation is for increased range volatility. We then have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3355, initially targeting 3368 – 3375 zone.
2.) Price sustains an offer below 3355, initially targeting 3343 – 3341 zone.
P -VA High = 3376 P – VA Low = 3363 P – POC = 3368
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3395; LOD ATR Range Projection: 3345; 3 Day Central Pivot: 3358; 10 Day Average True Range 38; VIX: 22
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price is displaying volatile action during overnight trade with options expiry on tap for today. As such we have two scenarios to consider for today’s trading.
P – VA High = 11232 P – VA Low = 11145 P – POC = 11185
Bull Scenario: IF Bulls hold bid above 11185, THEN initial upside estimate targets 11210 – 11230 zone.
Bear Scenario: IF Bears hold offer below 11185, THEN initial downside estimate targets 11160 – 11150 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 11290; LOD ATR Range Projection: 11070; 3 Day Central Pivot: 11070; 10 Day Average True Range: 196; VIX: 22
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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