Technically the MKT is in a NEUTRAL TRANSITION with sentiment leaning negative and flirting with a negative turn. Opportunity exists on both sides of the equation however the threat of an acceleration of the negative momentum outweighs the buy side if the integrity of the previous session high remains intact.
Key off the 12297 Inflection Pivot for an indication of the session tone. If the MKT is going to remain stable it will not do much trading below here. If so the negative momentum is expected to dominate.
On the SELL side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current positive to negative transition will continue. Keep aggressive position management on BREAKOUT strategies below 12297 as the MKT is still in the neutral zone and has yet to commit to a new trend. A more conservative strategy would be to wait for positive reactions after a negative signal to FADE into against 12373. The trade should be fluid with the MKT immediately giving background after any positive squeeze. 12449 is the high point for any positive squeeze if the negative signal is going to play out and FADE and REVERSAL signals should be excepted.
On the BUY side avoid FADE strategies of the 12297 support area until after the previous session high point or major resistance has been taken out to confirm a break in momentum. Until then a better opportunity will be a REVERSAL strategy but only off 12297. This is a one shot trade using a low risk big profit target criteria. The idea is that the transition trade is over and a positive shift back into a NEUTRAL DIGESTION is expected. BUY BREAKOUT strategies above 12449 can be profitable but they are aggressive and should use the same aggressive position management as a REVERSAL. Risk less go for more.
Note: The MKT is trying to shift from a positive to a negative trend position. False starts and stops should be expected and position management adjustment anticipated, as quick momentum turns are the norm in this technical environment.
JS
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