The DEC '09 WHEAT contract produced a counter trend signal and may be set for a short term shift in sentiment. Key off the 460-4 Inflection Pivot for an indication of the session bias. If yesterday's positive signal is going to have any meaning it will violate this price point and not look back, targeting 477-4 on the move. Although the BEAR TREND CORRECTION signal is expected to influence the MKT for the next couple days a reaction should be expected.Trading below 460-4 and the signal is more NEUTRAL than positive with 443-4 the digestive low point for any sideways session. A break under the 443-4 support pivot and the BEAR TREND will look to re-establish itself targeting 426-4 on the next drop. 409-4 is the lower extreme for any emotional release.
MKTs in the BEAR TREND CORRECTIVE technical state will typically have sharp corrective rallies against the underlying negative momentum. Today the MKT will need to overcome the 460-4 Inflection Pivot to confirm a shift into this technical state. The 460-4 Inflection Pivot is the price point that defines the session bias and today it also defines the point where the BEAR TREND losses its grip for a corrective rise. Below 460-4 don't believe the hype, this contract remains an accident waiting to happen.
JS
Strategy Based Trading is a methodology that focuses on the applied strategy verses a specific market and looks to align strategies with markets whose current technical behavior matches the strategies criteria.Please review the following CME sponsored tutorial for a complete overview of this approach.
STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html
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 FREE Trial.
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