Tuesday’s Session was
Cycle Day 1 (CD1): Price continued in rally-mode until excess momentum fulfilled Cycle Penetration objectives, then reversing direction, selling down to yesterday’s late day breakout (3943), and finally settling neutral mid-range. Range was 28 handles on 1.332M contracts exchanged.
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This leads us into Cycle Day 2 (CD2): Having closed mid-range, typical price action expected would be for continued consolidation of recent rally. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3960, initially targets 3970 – 3975 zone.
2.) Price sustains an offer below 3960, initially targets 3950 – 3945 zone.
3 Day Cycle has a 91% probability of fulfilling Positive Statistic covering 12 years of recorded tracking history.
Tuesday’s Session was
Cycle Day 2 (CD2): Price consolidation during Globex Session led to continuation rally during RTH Session fulfilling CD2 Penetration Objective. Late day profit-taking pushed price to close near Value Area Low (3871). Range was 75 handles on 1.627M contracts exchanged.
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This leads us into Cycle Day 3 (CD3): Cycle Targets have been fulfilled, so as such the decline can begin at any time. We’ll mark today as a “wild-card”, as price is free to move in any direction. As such, there are two estimated scenarios to consider for today’s trading.
1.) Price sustains a bid above 3875, initially targets 3890 – 3900 zone.
S&P 500 Futures: Turnaround Tuesday Sellers Spoil Monday’s Rally
After a 39.25-handle overnight range, the S&P 500 futures opened Tuesday’s regular session at 3900.75 and traded the daily high of 3903.50 on the open before sellers took charge, pushing the index futures lower throughout the early morning down to 3868.25 just after 10:30 CT. Buyers came in at that point giving life to equities that would last through the rest of the morning and into the noon hour when the ES hit a lower high of 3900.00 just before 1:00. The afternoon gave way to sellers who would manage to push the markets down to a new low of day, printing 3865.50 just before 3:00 before settling at 3872.75, down 29.50 handles on a total volume of a solid 1.6 million contracts traded. In terms of price action, it was all about selling the open, buying the midmorning low, then selling the midday high, and covering near the close.