Market Review
Polaris Trading Group: Taylor 3 Day Cycle Commentary Author: David D Dube (PTGDavid)
Tuesday’s Session was Cycle Day 2 (CD2): Early attempts to break out above 2940 handle failed as increased selling pressure trapped buyers. Violation of prior key support 2895 attracted additional selling as the gauntlet was thrown down with long liquidation pressing price to session lows by the closing bell.
…Transition from Cycle Day 2 to Cycle Day 3
This leads us into Cycle Day 3 (CD3): Having closed near low of session we then have Two Scenarios to consider:
1.) Price continues lower targeting 2825.25 CD3 Violation Level which matches with May 6st Pivot Low. Failure to hold this level opens the trap door to lower 2797.
2.) Price finds a supportive bid preferably above Prior Low (2838) as bulls work to recover lost Cycle Day 1 Low (2889.75) before end of session, otherwise this Cycle will be marked as “failed” (9% probability).
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 3
Thanks for reading,
PTGDavid
Polaris Trading Group
Economic Calendar
Closing Prices
In the Tradechat Room
MiM
Solid sell into the close that kicked off concurrently with 3 pm ET early data which we got at around 3:10 pm and we watched build consistently into the 3:50 lock. By 3:25 we had reached that 66% symbol percentage telling us 2 symbols were for sale for every buy imbalance. That type of lean shows breadth to support the selling and by 3:50 the dollar side confirmed also moving below -66% This is the first early MiM since the floor closure to reach those threshold numbers. That was a 40 point sell-off. Watch the open today for follow-through.
Questions? Please email me: Marlin@mrtopstep.com
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Globex
| (ESH20:CME) GLOBEX Session | (ESH20:CME) Day Session |
| High 2933.00 | Opening Print: 2935.00 |
| Low: 2894.50 | High 2939.00 |
| Volume: 326,000 | Low: 2851.25 |
| ES Settlement: 2852.75 | |
| Total Volume: 1.78M |
Our View
S&P 500 Futures: Nasdaq Composite Up 6 of the Last 7 Sessions
I started out today’s OP writing about all the ups and downs and the downs erased all prices action at 6:30 CT. The ES is trading 2835.50, down 3 handles during Tuesday night’s early Globex session. I am going to spare you the gory details but the ES sold off from an early high of 2937 after the open all the way down to 2851.25, down 70.75 handles or -2.40% on the day. Our view, as the day wore on so did the markers. My feeling is the ES can bounce but not hold. Our lean is to sell the 20 to 30 handle rallies.
Danny Riley is a 39-year veteran of the CME trading floor. He has helped run one of the largest S&P desks on the floor of the CME Group since 1985.
Market Vitals Technical Analysis
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As always, please use protective buy and sell stops when trading futures and options.
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