S&P 500
Important Note: We have begun publishing the PTG Trading Room Daily RECAP which you should be receiving at the end of each trading day. This publication is a more detailed review of how the trading unfolded throughout the day from our viewpoint. It is an “educational” complimentary companion to be used in conjunction with the Daily Trade Strategy. It continues to be “work-in-progress”, so please offer feedback as to content, style and relevance. We are always striving to make PTG Products and Services the very best
Prior Session was Cycle Day 1: Normal CD1 as price declined establishing a new cycle low at 5754.75, which we will use as this cycle’s performance benchmark. This session was Day 4 of the consolidation phase post FED as price traversed our core range (5745 – 5785) as outlined in previous Daily Trade Strategy Briefings. Range was 39 handles on 1.013M contracts exchanged.
For a more detailed recap of prior trading session click on this link: Trading Room RECAP 9.23.24
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2: Value has been migrating higher (see chart below) during this consolidation phase, which by conventional wisdom favors an upside resolution and continuation of the uptrend. Key pivot (5770) is a critical hold on any pullback within multi-day range. Ideally, for continuation breakout higher, price should hold above 5785 with fresh new aggressive buying volumes. So we will remain patient and vigilant for the proper structural conditions to support retest of All-Time Highs.
Typically markets ebb n flow from Contractionary to Expansionary periods. The next expansionary phase will develop, so we need to be prepared for when it does. I have noted some level ideas for the next expansion, which is meant to be an overview guide.
Expansion Trigger Level?
The key level to watch for an expansion trigger would be 5785 on the upside. This was noted as a resistance zone that bulls have struggled to clear.
If price action breaks above 5785 and holds, it could act as a trigger for expansion and a potential rally to higher levels, with multiple upside targets staggered between 5800-5820 or higher, depending on momentum.
On the downside, if price breaks below 5755, which is the lower boundary of larger range, it could trigger a downward expansion, with potential targets between 5720-5700.
So, the critical trigger levels for expansion:
- Upside: Break and hold above 5785.
- Downside: Break below 5755.
Our discipline of maintaining positioning that is aligned with market forces continues to serve us well, so stay the course.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 5785, initially targets 5805 – 5810 zone.
Bear Scenario: Price sustains an offer below 5785, initially targets 5770 – 5765 zone.
PVA High Edge = 5793 PVA Low Edge = 5775 Prior POC = 5786
ES Chart (Profile)
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1: Normal CD1 as price declined establishing a new cycle low at 19953, which we will use as this cycle’s performance benchmark. The range parameters hit perfectly within the 19980 – 20165 outlined in prior DTS Briefing 9.24.24. Range was 261 handles on 449k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
This leads us into Cycle Day 2: Price is at the upper edge of the four-day consolidation with high expectation of a resolution higher. As always, we will let Mr. Market be our trading tour-guide for directional breakout. SHOW ME THE WAY!
Our discipline of maintaining positioning that is aligned with market forces continues to serve us well, so stay the course.
As such, scenarios to consider for today’s trading.
Bull Scenario: Price sustains a bid above 20185, initially targets 20265 – 20345 zone.
Bear Scenario: Price sustains an offer below 20185, initially targets 20125 – 20090 zone.
PVA High Edge = 20207 PVA Low Edge = 20091 Prior POC = 20152
NQ Chart (Profile)
Economic Calendar
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.” –BR
*****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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