Market volatility is not going away as Wall Street experienced more whiplash on Wednesday, with stocks closing broadly lower and futures pointing lower overnight.
8:30 Initial Jobless Claims
8:50 Fed’s Kaplan Speech
10:00 New Home Sales
10:00 Powell Testifies Before the Senate Banking Committee
10:30 EIA Natural Gas Inventory
11:00 Kansas City Fed Mfg Survey
12:00 PM Fed’s Bullard: U.S. Economy and Monetary Policy
1:00 PM Results of $50B, 7-Year Note Auction
1:00 PM Fed’s Evans: Economic Conditions and Monetary Policy
1:00 PM Fed’s Barkin Speech
2:00 PM Fed’s Bostic Speech
2:00 PM Fed’s Barkin Speech
2:00 PM Fed’s Williams Speech
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
Labor Department is expected to say the number of jobless claims declined to 840K last week – down 20K from the previous week’s tally – and the lowest reading since March 14
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Prior Session was Cycle Day 2 (CD2): Early rally that reached CD2 Penetration Level reversed direction, as price cascaded lower with increased volume and range. Market on Close Sell Imbalance of $2 billion capped the session.Range was 98.75 handles on 1.839M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price is currently below CD1 Low (3256.50) threatening a failed 3 Day Cycle. Recovery back above this level during the RTH Session is required to negate a failed cycle. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3225, initially targeting 3250 – 3255 zone.
2.) Price sustains an offer below 3225, initially targeting 3210 – 3180 zone.
*****3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
PVA High Edge = 3320 PVA Low Edge = 3248 Prior POC = 3296
Range Projections and Key Levels (ES) December 2020 (Z) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price is currently below CD1 Low (10897.50) with potential for a failed 3 Day Cycle if not able to recover back above during RTH Session. As such, there are two scenarios to consider for today’s trading:
PVA High Edge = 11220 PVA Low Edge = 10936 Prior POC = 11085
Bull Scenario: IF Bulls sustain a bid above 10800, THEN initial upside estimate targets 10850 – 10900 zone.
Bear Scenario: IF Bears sustain an offer below 10800, THEN initial downside estimate targets 10750 – 10700 zone.
Range Projections and Key Levels (NQ) December 2020 (Z) 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.”
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