Markets
S&P 500 To Take Aim At New Record
The index had a modest gain yesterday that pushed it to a new record. Futures are up 0.17% today aiming to hit a new record.
Source: Seeking Alpha https://seekingalpha.com/
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
10:00 Quarterly Services Report (Advance)
10:30 EIA Petroleum Inventories
1:00 PM Results of $25B, 20-Year Bond Auction
2:00 PM FOMC minutes
Source: https://www.investing.com/economic-calendar/
S&P 500 (ES)
Tuesday’s Session was Cycle Day 3 (CD3): 3 Day Positive Cycle Statistics were fulfilled as price made a new all-time high, but quickly retreated. Market on Close Sell Imbalance of $1.8B capped the session, with a range of 25.50 handles and 995k contracts exchanged on a relatively quiet summer day.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Price settled the prior session with a solid bid, but off high of day. Normal for CD1 is for some magnitude decline with average measuring 3365. Volatility and volumes have been light with range contraction, so achieving average range values may be a stretch, but definitely within range parameters and not out of the question.
Price is currently trading above prior value, so then we have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3390, initially targeting 3395 – 3400 zone.
2.) Price sustains an offer below 3390, initially targeting 3380 – 3375 zone.
P -VA High = 3390 P – VA Low = 3379 P – POC = 3386
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3415; LOD ATR Range Projection: 3362; 3 Day Central Pivot: 3375; 10 Day Average True Range 30; VIX: 21.67
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price is currently trading above prior value. As such we have two scenarios to consider for today’s trading.
P – VA High = 11393 P – VA Low = 11312 P – POC = 11340
Bull Scenario: IF Bulls hold bid above 11393, THEN initial upside estimate targets 11435 – 11455 zone.
Bear Scenario: IF Bears hold offer below 11393, THEN initial downside estimate targets 11363 – 11343 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 11579; LOD ATR Range Projection: 11256; 3 Day Central Pivot: 11258; 10 Day Average True Range: 180; VIX: 21.67
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
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