Markets
As the fallout from Jackson Hole continues to ripple through markets, investors have their eyes on more drama stemming from the central bank. The Federal Reserve this week is set to raise the throttle of its quantitative tightening (QT) program by picking up the pace at which it unwinds its balance sheet. The move is a stark reversal of pandemic-era bond buying, which saw the central bank nearly double its balance sheet to nearly $9T from $4.2T over the past two years.
Source: SeekingAlpha.com
Economic Calendar
10:00 Consumer Confidence
10:00 Job Openings and Labor Turnover Survey
11:00 Fed’s Williams Speech
https://www.investing.com/economic-calendar/
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S&P 500
Prior Session was Cycle Day 3 (CD3): This cycle did fail to meet its positive criteria, as price stabilized per yesterday’s DTS Briefing 08.29.22. Range was.57 handles on 1.901M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline for CD1 measures 3982. Having stabilized during prior session, price is currently (pre-rth) rallying as firm bid during overnight session is providing some relief to the oversold extreme conditions. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4050, initially targets 4070 – 4075 zone.
Bear Scenario: Price sustains an offer below 4050, initially targets 4035 – 4030 zone.
PVA High Edge = 4046 PVA Low Edge = 4019 Prior POC = 4028
Range Projections and Key Levels (ES) Sept 2022 (U) Contract
HOD ATR Range Projection: 4095; LOD ATR Range Projection: 4004; 3 Day Central Pivot: 4105; 3 Day Cycle Target: 4107; 10 Day Average True Range 68; VIX: 25
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)…Today is CD1 with Average Decline measuring 12283. Price is currently trading higher as expectation is for continued stabilization for month end. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 12580, THEN initial upside estimate targets 12660 – 12680 zone.
Bear Scenario: IF Bears sustains offer below 12580, THEN initial downside estimate targets 12550 – 12505 zone.
PVA High Edge = 12595 PVA Low Edge = 12493 Prior POC = 12563
Range Projections and Key Levels (NQ) Sept 2022 (U) Contract
HOD ATR Range Projection: 12768; LOD ATR Range Projection: 12373; 3 Day Central Pivot: 12787; 3 Day Cycle Target: 12808; 10 Day Average True Range: 285; 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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