MKTstate

SP500 – Positive signal needs confirmation

The SP500 produced an Uptrend Acceleration signal, which will remain in play with all trading above the 908 Inflection Pivot.

An Uptrend Acceleration signal is when the MKT has been trading in a digestive state and takes the 1st step in transitioning to a more aggressive Bull Trend posture. Under the current technical conditions this signal will remain true above 908, which is the ideal entry area for any longs today.

Keep a positive outlook above 908 expecting a challenge to the 926.50 resistance pivot. If the signal is going to fizzle the rally will top out here. A held violation of 926.50 puts the MKT in an bid posture but a breach of 931.25 is needed to give the acceleration signal its due targeting 962.50 on the initial move.



A break under 908-907.25 negates the positive signal and turns sentiment sour targeting 889.50 on any negative turn of events. This sell off can slide as low as 971 without sounding off any alarms. Only under 962.50 are the Bears back forecasting a return of the fear factor.

Acceleration signals have the potential to be the kick start to a new move. The danger is that the the signal was false and a counter reaction is produced. By entering at qualified Inflection Pivots you reduce this risk and improve your odds of success.



JS

This commentary supports JS Services Strategy Based Trading approach.For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.* The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary Trial.