The MKT is holding firm but remains in a corrective posture down to the 12345 Inflection Pivot. This is the low point for any setback if the underlying tone is going to remain positive.
On the SELL side accept FADE signals against the 12419 resistance pivot only on the 2nd or 3rd confirmation. REVERSAL strategies should only be done off 12419 or the previous session high point at 12431 and will immediately work if they are going to. Keep position and risk management tight on these trades. SELL BREAKOUT strategies below 12345 will work better as a signal for a FADE of Directional resistance at 12390 with profit targets at the 12361 support area. The underlying tone is positive and negative follow through is not expected.
On the BUY side accept REVERSAL signals off all major inflection levels, expecting the underlying positive momentum to resume. FADE strategies off ther 12361 and 12345 support Inflection Pivot will work better with confirmation as the MKT is in a corrective state and will be probing lower looking for soft spots. Work any BUY BREAKOUT strategies above the 12419 resistance pivot as any positive shift in momentum has the potential to be the start of the next leg higher.
Note: The MKT is in a corrective position and sharp negative sell offs are not expected to follow through. If after a break the MKT stabilizes and starts to build structure, look for buy opportunities and work it until that structure is broken.
JS
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