The JUN'10 SP500 Futures contract is in a NEUTRAL DIGESTIVE technical state after an unsuccessful press to new move highs. This MKT is set to churn with 1176-1146.75 the current digestive extremes.
1146.75 is the session Inflection Pivot and the low point for any big sideways trade.
On the SELL side avoid BREAKOUT strategies below 1157.50 but rather FADE a positive reaction after a negative breakdown signal against 1166.75. REVERSAL strategies at 1176 and 1185.25 are recommended over FADE strategies as "sloppy" trading conditions are expected. Any FADE trades should get confirmation or an exhaustion or turning point signal before executing. Position management adjustments should be anticipated for all sales as sideways trading conditions can quickly erase profits.
On the BUY side BREAKOUT strategies above 1166.75 and 1176 are valid but should expect a laborious trade. Work any position, selling into emotional surges and re-entering on any sharp pullbacks. Expect a choppy trade and be aggressive on minimizing profit giveback. FADE and REVERSAL strategies are recommended off 1157.50 and the 1153.25-1146.75 support band. The probability is to the upside today but is not a day to press it.
Note: The MKT is in neutral and is more likely to go nowhere fast. Don't get stubborn, however, if the MKT starts to get into trend mode as the contract may just be expanding its digestive parameters producing a one way trade into the close and new extreme. Be more aggressive accepting BUY signals off 1153.25 and down to 1146.75 as this is the base for any new advance.
JS
Join our "LIVE" TRADE ROOM and watch JS Services transparent automated strategies trade these recommendations! For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.
