Technically the MKT is in a DIGESTIVE BULL TREND with a slight negative tone. The MKT is searching for support so wait for a positive signal instead of trying to create one.
Key off the 117-085 Inflection Pivot today as this is the expected low point for any new weakness if the MKT is going to end the session in positive territory.
On the SELL side FADE and REVERSAL signals off the 117-295 resistance level are valid. The MKT has a soft tone and is expected to probe lower as long as the intra-day structure is negative. Keep position management and profit targets aggressive, as these trades are counter trend. SELL BREAKOUT strategies below 117-085 are more aggressive, as follow through to the downside is not expected at this time.
On the BUY side accept REVERSAL strategies off the 117-085 and 116-300 support levels with the expectation that any signal has the potential to be the beginning of the next leg higher. BUY FADE strategies off 117-085 will need confirmation before they should be accepted. In addition any test may need to build a base before it can mount a sustained positive push, so expect a laborious trade. BREAKOUT strategies above 117-19 and the 117-295 resistance pivot are valid however the digestive trade will make FADE strategies off support on a "pullback" after a BREAKOUT signal a better opportunity.
Note: The MKT has any underlying positive tone but may probe lower to define its digestive range.
JS
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