Ahead of bank earnings and inflation data later in the week, investors are keeping their eyes on the 10-year Treasury yield, which continues to spike to multi-year highs. Early Monday, the rate climbed 5 basis points to 2.76%, notching a level last seen in 2019.
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Prior Session was Cycle Day 2 (CD2): Morning session strength faded as “risk-off” prevailed during Afternoon session at end of week. Range was 51 handles on 1.293M contracts exchanged.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Price is currently above below CD1 Low (4444.50) and will need to hold during RTH for a positive cycle statistic. Historical odds favor this outcome, though sentiment shift has taken a negative turn. As such, estimated scenarios to consider for today’s trading.
Bull Scenario: Price sustains bid above 4455, initially targets 4470 – 4475 zone.
Bear Scenario: Price sustains offer below 4455, initially targets 4445 – 4425 zone.
PVA High Edge = 4512 PVA Low Edge = 4485 Prior POC = 4406
Range Projections and Key Levels (ES) June 2022 (M) Contract
Nasdaq 100 (NQ)
Today is Cycle Day 3 (CD3)…Price has broken down below CD1 Low (14317). Momentum is accelerating to the downside as price has already fulfilled downside cycle target (14155). Price will need to recover to avert a failed cycle. As such, there are two estimated scenarios to consider for today’s trading.
Bull Scenario: IF Bulls sustains bid above 14215, THEN initial upside estimate targets 14260 – 14280 zone.
Bear Scenario: IF Bears sustains offer below 14215, THEN initial downside estimate targets 14155 – 14075 zone.
PVA High Edge = 14450 PVA Low Edge = 14320 Prior POC = 14381
Range Projections and Key Levels (NQ) June 2022 (M) 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
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