Polaris Trading Group: Taylor 3 Day Cycle Commentary Author: David D Dube (PTGDavid)
***Written 8 pm Tuesday evening for Wednesday’s trading
Tuesday’s Session was Cycle Day 3 (CD3): Price did reach CD3 Penetration Level (3362) during the overnight session, and then it failed to clear above prior close during the RTH session. This double-failure sequence set in motion a decline which carried price down to test prior session low, before settling mid-range. Range was 31.75 (50% of 10 day average) on 1.05M contracts exchanged.
…Transition from Cycle Day 3 to Cycle Day 1
This leads us into Cycle Day 1 (CD1): Normal for CD1 is for some magnitude decline, with an average measuring 3305. Presidential Debate is scheduled later this evening, post penning of this briefing, so anything and everything can happen. As such, there are two scenarios to consider for today’s trading.
1.) Price sustains a bid above 3330, initially targeting 3345 – 3350 zone and extended target measuring 3360.
2.) Price sustains an offer below 3330, initially targeting 3310 – 3305 zone.
For more detailed information for both bullish and bearish projected targets, please visit: PTG 3 Day Cycle and/or reference the Cycle Spreadsheet below:
Link to access full Cycle Spreadsheet >> Cycle Day 1 (CD1)
Thanks for reading,
Polaris Trading Group
In the Tradechat Room
One of the smallest reveals I can remember, just a 15M buy. The close shows it moving sideways for 2 hours in a 12-point range.
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It is all about the data. It is the only real weapon we have to re-opening safely pre-effective-and-distributed-vaccine and we can’t even release death certificates in a timely fashion. Testing alone doesn’t do it, tightening up the data cycle is necessary or else testing is wasted.
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Chart of the Day
|(ESH20:CME) GLOBEX Session||(ESH20:CME) Day Session|
|High 3363.00||Opening Print: 3340.75|
|Low: 3332.00||High 3348.25|
|Volume: 210,000||Low: 3316.50|
|ES Settlement 3334.00|
|Total Volume 1.30 M|
S&P 500 RECAP – Trade Date 09/29/ 2020
#ES Money Maker Chart
S&P 500 Futures: Lowest Volume Since September 1st
After a 31 handle range overnight, the S&P 500 futures opened Tuesday’s regular session at 3340.75, down 5.75 handles and went on to trade an early low of 3335.00 before rallying to 3348.25 before 9:30 CT in what would be the high of day, failing just below Monday’s high. The rest of the morning would see selling as equities were weak leading the S&Ps down to a morning low of 3317.50.
After a bounce to 3328.00 during the noon hour, the ES would retest the morning lows in the early afternoon, printing 3316.50, a 31.75 handle move off the highs. Buyers would step in there pushing the futures back up to 3339.50 at 1:30 before rolling over late in the day, making a late session low of 3324.00 before rallying to settle the day at 3334.00, down 12.00 handles or -0.36%.
Total volume would amount to a modest 1.3 million contracts, the lowest since the first trading day of September. In terms of price action, it was a two sides market with nice swings that ultimately went sideways
Biden Holds His Own
I’m not sure how others saw it but Joe Biden ‘held his own’ last night. From the get-go, President Trump was on the attack constantly interrupting Biden while he spoke. Surprisingly, Bloomberg called it a draw and FOX news said they were not sure what the public got out of the chaotic debate. In my mind, it was another embarrassment for the US and the presidential election.
Our view, today is the last trading day of September and based on last night’s price action we should see higher prices today. Our lean is to sell the gap up or the early rallies and buy the pullbacks.
Market Vitals Technical Analysis
Did you know that your premium membership gives you access to our Market Vitals? Click on the image below and get today’s key levels.
As always, please use protective buy and sell stops when trading futures and options.
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