The MKT is in a NEUTRAL TRANSITION technical posture with the potential for a positive turn. Opportunity exists on both sides however there is a better chance of acceleration to the upside if the integrity of the 5.134 Inflection Pivot remains intact.
On the SELL side avoid FADE strategies until after the 5.134 level has been broken to confirm a shift in momentum. Until then a better opportunity will be a REVERSAL strategy but only off the 5.440 resistance level. This is a one shot trade using a low risk big profit target criteria. The idea is that the transition trade is over and a negative shift back into a NEUTRAL DIGESTION is expected. SELL BREAKOUT strategies under 5.134 can be profitable but they are aggressive and should use the same aggressive position management as a REVERSAL. Risk less go for more.On the BUY side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current negative to positive transition will continue. Keep aggressive position management on BREAKOUT strategies above 5.440 as the MKT is still in the neutral zone and has yet to commit to a new trend. A more conservative strategy would be to wait for negative reactions after a positive signal to FADE against 5.287 or 5.134. The trade should be fluid with the MKT immediately taking back lost ground after any downside squeeze.
Note: The MKT is trying to shift from a negative to a positive trend position. False starts and stops should be expected and position management adjustment anticipated, as quick momentum turns are the norm in this technical environment.
JS
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.
