S&P 500 has fallen in seven straight sessions through Wednesday, the first time the large-cap index has done that since 2011. Yet even amid all of the declines, the S&P has fallen less than 2.5% in the past seven sessions. To put that into context, the market has suffered a greater percentage drop on two separate days this year. With election day almost here, will Mr. Market finally snap out of his mood?
Although many traders are anticipating a rate hike before the end of the year, the Fed on Wednesday held interest rates steady again, while continuing to acknowledge that the case for a move is getting stronger. FOMC officials, however, made no direct nod to a coming rate increase at the December meeting, a move that the market is strongly anticipating. The Fed also adjusted its rhetoric – no longer predicting low near-term inflation.
In Asia, Japan -1.8% to 17134. Hong Kong -0.6% to 22683. China +0.8% to 3128. India -0.4% to 27430.
In Europe, at midday, London -0.6%. Paris +0.6%. Frankfurt +0.1%.
Futures at 6:20, Dow +0.1%. S&P flat. Nasdaq -0.3%. Crude +0.7% to $45.67. Gold -1.1% to $1294.10.
Ten-year Treasury Yield flat at 1.8%
***Note: The odds highlighted are NOT predictions or trade recommendation rather a guide based upon historical observed occurrences.
Today’s Hypotheses: Sept (Z) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels. We will identify specific trade levels in Trading Room.
Bull _ Bear Scenarios
Scenario 1: IF price holds above CD1 Low (2087.25), THEN primary objective is to rally to 2097 handle. Conversion of this level to new support targets 2107 – 2110.00 3 Day Central Pivot Zone.
Scenario 2: Violation and conversion of CD1 Low (2087.25) to lower resistance forces margin selling with lower tragets measuring 2082 handle with extreme low 2075 CD2 Max Violation Level.
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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