Markets (Top Stories)
The budgetary standoff in the U.S. doesn’t look like it will abate soon, raising the likelihood of the first government shutdown since 2019, as hardline Republicans continue to hold off on agreeing to a stopgap spending bill. Current funding for federal operations will end on October 1. If Congress fails to reach a spending deal by then, thousands of federal workers will be furloughed without pay.
Prior Session was Cycle Day 3 (CD3): Failed Three-Day Cycle as price could not recover previous CD1 Low 4443, as selling momentum and “risk-off” mind-set was to overwhelming for bulls to overcome. Prior range was 41 handles on 1.650M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline measures 4364 which has already been exceeded as price is currently trading below Prior Low (4357) pre RTH. Bulls will need to form a greater defense to stem any further slide. August low has been violated and next BIG test is the 50 Week (yes week) average at 4346 handle. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 4355, initially targets 4375 – 4380 zone.
Bear Scenario: Price sustains an offer below 4355, initially targets 4345 – 4340 zone.
PVA High Edge = 4394 PVA Low Edge = 4372 Prior POC = 4380
Range Projections and Key Levels (ES) December 2023 (Z) Contract
Nasdaq 100 (NQ)
Prior Session was Cycle Day 3 (CD3): Failed Three-Day Cycle as price could not recover previous CD1 Low 15127, as selling momentum and “risk-off” mind-set was to overwhelming for bulls to overcome. Prior range was 191 handles on 617k contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Average Decline measures 14915 which has already been exceeded as price is currently trading at CD1 range low at 14821 handle. Bulls will need to form a greater defense to stem any further slide. As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 14855, initially targets 14940 – 14945 zone.
Bear Scenario: Price sustains an offer below 14855, initially targets 14825 – 14800 zone.
PVA High Edge = 14936 PVA Low Edge = 14865 Prior POC = 14921
Range Projections and Key Levels (NQ) December 2023 (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.”
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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