S&P 500 futures advanced 0.3% overnight trading.
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
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
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
*****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.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
IMPORTANT NOTICE! No representation is being made that the use of this strategy or any system or trading methodology will generate profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading securities and options on equities. Only risk capital should be used to trade. Trading securities is not suitable for everyone.
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