S&P 500
Prior Session was Cycle Day 1: Worth established new CD1 Low at 5886.50 which matched our 5885 Line in the Sand (LIS) for this session. Bulls maintained control achieving 5910 – 5915 target zone per prior DTS Briefing. Prior range was 39 handles on 870k contracts exchanged.
For a more detailed recap of the trading session, click on this link: Trading Room RECAP 10.18.24
Check out the link to learn more about the Taylor Cycle and secure your FREE TRIAL.
…Transition from Cycle Day 1 to Cycle Day 2
Transition into Cycle Day 2: This week kick’s off with price consolidating near the all-time high, though volumes have been sub-par which is notable, deserving close monitoring. Range edges are marked between 5875 – 5915.
Bulls will be looking to maintain bid above 5890 – 5895 and build on this to reclaim 5915 for a push to retest 5925 – 5927 zone.
Bears will be looking to orchestrate another “bear-raid” below the 5890 – 5885 zone to push the 5775 – 5870 zone and force long liquidation. Between these levels price can continue consolidating, building energy for the next directional move.
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 5895, initially targets 5915 – 5920 zone.
Bear Scenario: Price sustains an offer below 5895, initially targets 5875 – 5870 zone.
PVA High Edge = 5909 PVA Low Edge = 5894 Prior POC = 5907
ES (Chart Profile)
Nasdaq 100 (NQ)
Prior Session was Cycle Day 1: Price established new CD1 Low at 20433 which will be used to measure this cycle’s performance to Cycle Day 3. Options Expiration (OPEX) was the primary influence on this session’s rhythms as expected in prior Briefing. Relative tight range and is notable that the Value Zone shifted higher between 20470 – 20507. Prior range was 209 handles on 378k contracts exchanged.
…Transition from Cycle Day 1 to Cycle Day 2
Transition into Cycle Day 2: This week kick’s off with price in “consolidation-mode” between 20350 – 20575, though volumes have been sub-par which is notable, deserving close monitoring.
Bulls will be looking to maintain bid above 20485 – 20517 zone and build on this to reclaim 20575 for range expansion.
Bears will be looking to push below 20430 for a push to range low 20350.
It’s been a see-sawing pattern this past week with no apparent directional bias. As such we’ll continue to expect similar rhythms until either side of the broad consolidation can be cleared. Between these levels price can continue consolidating, building energy for the next directional move.
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 20480, initially targets 20575– 20595 zone.
Bear Scenario: Price sustains an offer below 20480, initially targets 20430 – 20380 zone.
PVA High Edge = 20503 PVA Low Edge = 20458 Prior POC = 20490
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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CFTC RULE 4.41 –HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN
