U.S. stock index futures are shooting for a comeback after the tech-heavy Nasdaq ended its worst week since March. The Dow is pointing to a 250-point advance, while contracts tied to the S&P 500 and Nasdaq 100 are up 1.2% and 1.7%, respectively.
Source: Seeking Alpha https://seekingalpha.com/
S&P 500 (ES)
Prior Session was Cycle Day 3 (CD3): Price successfully tested mid-week lows for positive 3 Day Cycle Statistic and rallied by day’s end. Range was 66.50 handles with 1.274M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Price has firm bid pre-RTH trading above prior close (3327) and slightly above prior value zone.. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3355, initially targeting 3375 – 3380 zone.
2.) Price sustains an offer below 3355, initially targeting 3340 – 3330 zone.
P -VA High = 3355 P – VA Low = 3328 P – POC = 3338
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3414; LOD ATR Range Projection: 3283; 3 Day Central Pivot: 3348; 10 Day Average True Range 77; VIX: 26.50
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price has rallied back into prior value range. As such, there are two scenarios to consider for today’s trading.
P – VA High = 11253 P – VA Low = 11044 P – POC = 11117
Bull Scenario: IF Bulls hold bid above 11200, THEN initial upside estimate targets 11240 – 11260 zone.
Bear Scenario: IF Bears hold offer below 11200, THEN initial downside estimate targets 11155 – 11100 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 11484; LOD ATR Range Projection: 11804; 3 Day Central Pivot: 11210; 10 Day Average True Range: 395; VIX: 26.50
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.”
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