Markets
S&P 500 futures advanced 0.3% overnight trading.
Source: Seeking Alpha https://seekingalpha.com/
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
Source: https://www.investing.com/economic-calendar/
S&P 500 (ES)
Prior Session was Cycle Day 3 (CD3): Early successful test of CD1 resulted in end of month rally which took price higher closing near high of day. Range of 61.25 handles and 2.118M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Rally momentum from prior session is carrying over throughout GLOBEX Session with price near CD1 Penetration Level (3284). Normal for a CD1 is for some magnitude decline with average measuring 3247. We then have two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3274, initially targeting 3285 – 3300 zone.
2.) Price sustains an offer below 3274, initially targeting 3265 – 3255 zone.
P -VA High = 3248 P – VA Low = 3220 P – POC = 3227
Range Projections and Key Levels (ES) September 2020 (U) Contract
HOD ATR Range Projection: 3250; LOD ATR Range Projection: 3236; 3 Day Central Pivot: 3245; 10 Day Average True Range 38; VIX: 25
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Rally momentum from prior session is carrying over throughout GLOBEX Session with price fulfilling and exceeding CD1 Penetration Level (10964). As such we have two scenarios to consider for today’s trading.
P – VA High = 10648 P – VA Low = 10570 P – POC = 10600
Bull Scenario: IF Bulls hold bid above 10940, THEN initial upside estimate targets 11000 – 11022 zone.
Bear Scenario: IF Bears hold offer below 10940, THEN initial downside estimate targets 10875 – 10840 zone.
Range Projections and Key Levels (NQ) September 2020 (U) Contract
HOD ATR Range Projection: 10911; LOD ATR Range Projection: 10718; 3 Day Central Pivot: 10748; 10 Day Average True Range: 220; VIX: 25
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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