Technically the MKT is in a NEUTRAL CORRECTIVE state producing a negative signal against a positive trend. Opportunity exists on both sides of the MKT however the threat of fresh losses will loom over this market with all trading below the 118-55 Inflection Pivot.
On the SELL side avoid FADE strategies until after the previous session low point or 117-76 support level has been broken to confirm a negative shift in momentum. Until then a better opportunity will be a REVERSAL strategy at 118-55 but not at higher resistance levels. This is a one shot trade using a low risk big profit target criteria. The idea is that if the MKT is going to follow through on its negative signal any stength is just a "head fake " before it follows through. SELL BREAKOUT strategies below 117-76 and 117-10 can be profitable but they are aggressive and should look to take profits and potentially REVERSE long at support targets. The trade is corrective and the underlying positive tone must be respected.
On the BUY side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the positive momentum is going to resume. REVERSAL strategies are recommended over a FADE strategies off 117-76 and 117-10, which should have at least 1 if not 2 challenges to the support integrity before executing a long off it. BREAKOUT strategies above 118-55 can risk a little more if current events and other MKTs of confluence confirm a positive posture with the expectation that the Bull Trend is going to resume. If not a better approach would be to FADE a negative "squeeze" reaction off the 117-81-117-76 Directional area after a positve breakout signal above 118-55 as the neutral technical position can keep the trend sideways.
Note: The MKT is in a corrective position with the potential to move in either direction. Keep your opinions to themselves and focus on what the MKT is telling you it wants to do. Don't fight it, roll with it.
JS
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