Today we are going to focus on MKTs that have produced a major negative signal BEAR TREND ACCELERATION. This is a big negative that should accelerate the current downside momentum if valid. The question, is does this signal have potential or was yesterday's signal just a 1 day event. The price point to key off that keeps the MKT in an aggressive sell posture is the session Inflection Pivot. This is the price point that defines the technical state from being an aggressive sell posture below that price point to a potential reversal or digestive trade above that price point.
Trading below the session Inflection Pivot or what JS Services calls its REVERSAL LEVEL or R Level has the MKT in an aggressive posture and the BEAR TREND ACCELERATION signal in play. Trading above this price point is an indication that the negative vulnerability of the MKT is reduced and there is a better chance of a sharp positive push of firm digestive trade.
November 2, 2009
Below are the MKTs that have produced a BEAR TREND ACCELERATION signal and the Inflection Pivot that determines the continuation of the sell signal or not.
EQUITY FUTURES [DEC09]
SP500 1033.25
Dow Fut 9850
Nasdaq100 1710.75
DAX 5612.0
FTSE100 5102
Draw a line on your intra-day chart at these levels. Look for opportunity in the direction of the price bias. Executing at or near these price points will provide the best risk / reward.
If the current price is above the Inflection Pivot in this technical state, market sentiment is saying "prove it to me that you're bad". If the MKT cannot break under the Inflection Pivot the likely hood that the negative signal was just a 1 day event is high with the potential for a counter signal rally. If the Inflection Pivot is above the current price then the negative signal is still in play "up" to that price point. Any lower sales are not "wrong" unless the MKT is above the Inflection Pivot and sell signal below this point should be taken.
JS
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.
