The Saturday June 13, 2009 post identified a DOWNTREND ACCELERATION SELL SIGNAL. This is a breakout signal that had potential but only influenced the MKT for the day attaining the initial target.
The algorithm produced a DOWN TREND CORRECTIVE BUY signal for Tuesday's action as noted in Monday nights post with the expectation of a sideways to higher trade for the session. The MKT performed to expectation and remained within JS Services Critical Range extremes.
So now what?
There is no technical technical signal today but JS Services is defining the current technical state as NEUTRAL DIGESTION. Expectation today should be for a sideways trend less trade in this environment.
Based on the prior two sessions signals however we can refine our expectation. Monday GOLD had a Negative Trend Acceleration signal that was immediately followed by a Corrective Buy signal on Tuesday. The MKT did close higher on Tuesday but did not violate Monday's key Inflection Pivot at 948 nor could it close above the 938.8 Directional level defined in the post for Tuesday's trading keeping the MKT in a vulnerable position.
So for today's session the technical state is NEUTRAL DIGESTIVE, however the MKT remains vulnerable to a negative turn below the 945 Inflection Pivot. A breach of this level is needed to negate Monday's negative signal and confirm the neutral state.
This MKT is technical on the fence and should make a decision to its direction today or tomorrow.
The expectation is sideways but negative below 945.
By defining the MKTs technical state we can align our trading strategies with our expectations.
For more information please contact me at info@jsservices.com and visit http://www.jsservices.com/
JS
