The MKT is pressing the upper edge of its neutral digestion at the 9164 resistance pivot and will need to generate a positive push today if it is to avoid falling back into a corrective trade.
On the Sell side REVERSAL strategies off the 9164 and 9241 levels will work best as any false positive signal is expected to provide a sharp negative reaction. FADE strategies off the 9164 level are valid but will work better after the 2nd or 3rd press into an area. BREAKOUT below the 9010 support Inflection Pivot are a lower probability and should be used as a signal for a FADE strategy against the 9087 Directional resistance.
On the Buy side FADE and REVERSAL strategies are recommended off the 9087 and 9010 pivotal levels, especially if the previous session low point remains intact. BREAKOUT strategies above 9164 should hold structure after a resistance breach if they are going to follow through targeting 9318 and 9434. Any break in momentum and the market will be vulnerable to drop back into a digestive trade.
Note: The MKT may need a session or two to catch its breath. Keep an open mind and let the MKT tell you was is.
JS
This post supports the Strategy Based Trading, which is a methodology that focuses on the applied strategy verses a specific market. The approach 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 Reviewhttp://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.
