Markets (Top Stories)
Here are two things that could affect markets tomorrow:
1. Powell speech
The Fed’s Powell is expected to address the officials gathered in Jackson Hole at 10:05 ET (14:05 GMT).
2. Consumer sentiment
The University of Michigan’s latest consumer sentiment reading for August is due out at 10:00 ET. Analysts expect a recording of 71.2, which would be down slightly from the earlier 71.6 reading.
Source: SeekingAlpha.com
Economic Calendar
https://www.investing.com/economic-calendar/
S&P 500
Prior Session was Cycle Day 3 (CD3): As outlined in prior DTS 8.24.23, “There remains ample room to extend this rally, though at this stage we will mark today as a “wild-card.” Markets were only able to marginally push higher before reversing, as aggressive selling dominated the trading arena, giving back all the Nvidia (NVDA) “pump n dump” gains. Prior range was 107 handles on 1.715M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline measures 4448. Price is teetering with 5-day value area low (4383), so OTF “Dip Buyers’ will need to emerge to squelch any further deterioration. We’ll mark 4375 as today’s KEY Line in Sand. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4375, initially targets 4405 – 4410 zone.
Bear Scenario: Price sustains an offer below 4375, initially targets 4360 – 4350 zone.
PVA High Edge = 4446 PVA Low Edge = 4390 Prior POC = 4420
Range Projections and Key Levels (ES) Sept 2023 (U) Contract
HOD ATR Range Projection: 4441; LOD ATR Range Projection: 4332; 3 Day Central Pivot: 4426; 3 Day Cycle Target: 4435; 10 Day Average True Range 58; VIX: 17
Nasdaq 100 (NQ)
Prior Session was Cycle Day 3 (CD3): As outlined in prior DTS 8.24.23, “There remains ample room to extend this rally, though at this stage we will mark today as a “wild-card.” Markets were only able to marginally push higher before reversing, as aggressive selling dominated the trading arena, giving back all the Nvidia (NVDA) “pump n dump” gains. Prior range was 601 handles on 838k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline measures 15307. Price is teetering with 5-day value area low (14836), so OTF “Dip Buyers’ will need to emerge to squelch any further deterioration. Well mark 14800 as today’s KEY Line in Sand. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 14800, initially targets 14910 – 14940 zone.
Bear Scenario: Price sustains an offer below 14800, initially targets 14740 – 14700 zone.
PVA High Edge = 15212 PVA Low Edge = 14821 Prior POC = 14975
Range Projections and Key Levels (NQ) Sept 2023 (U) Contract
HOD ATR Range Projection: 15125; LOD ATR Range Projection: 14578; 3 Day Central Pivot: 15067; 3 Day Cycle Target: 15108; 10 Day Average True Range: 295; VIX: 17
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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