Markets
Off their overnight lows, U.S. stock index futures are still down 1% following a session that turned sour yesterday after the big Fed meeting. While the FOMC said interest rates could stay anchored to the zero-bound through 2023 (as the central bank tries to spur inflation), Jerome Powell kept asset purchases at current levels and sounded some alarm bells.
Source: Seeking Alpha https://seekingalpha.com/
Source: https://www.investing.com/indices/indices-cfds
Economic Calendar
8:30 Initial Jobless Claims
8:30 Housing Starts
8:30 Philly Fed Business Outlook
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
Source: https://www.investing.com/economic-calendar/
S&P 500 (ES)
Prior Session was Cycle Day 3 (CD3): FED announcement failed to excite traders as price broke key support (3390), unraveling into the close. Market on Close Sell Imbalance $1 Billion capped the session. Range was 45.75 handles with 1.466M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Price has continued prior session sell-down, exceeding average decline projection (3363) for CD1. Price is currently trading off its deep low (3310.25). As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3340, initially targeting 3350 – 3365 zone.
2.) Price sustains an offer below 3340, initially targeting 3320 – 3310 zone.
P -VA High = 3414 P – VA Low = 3392 P – POC = 3403
Range Projections and Key Levels (ES) December 2020 (Z) Contract
HOD ATR Range Projection: 3448; LOD ATR Range Projection: 3318; 3 Day Central Pivot: 3382; 10 Day Average True Range 82; VIX: 27
Nasdaq 100 (NQ)
Today is Cycle Day 1 (CD1)… Price is continuing its selling pressure pre-RTH trading near lows of overnight session. As such, there are two scenarios to consider for today’s trading.
P – VA High = 11472 P – VA Low = 11336 P – POC = 11418
Bull Scenario: IF Bulls hold bid above 11050, THEN initial upside estimate targets 11100 – 11150 zone.
Bear Scenario: IF Bears hold offer below 11050, THEN initial downside estimate targets 11000 – 10990 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) Contract
HOD ATR Range Projection: 11638; LOD ATR Range Projection: 10994; 3 Day Central Pivot: 11320; 10 Day Average True Range: 406; VIX: 27
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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