Technically the MKT is in a NEUTRAL CORRECTIVE state producing a big negative signal against a positive trend. Opportunity exists on both sides of the MKT however the underlying positive bias from the past 7 sessions will keep the pace above the 1181.3 Inflection Pivot. Only below here is the MKT vulnerable to a beating.
On the SELL side avoid FADE strategies against the 1204.4 resistance pivot until after the previous session low point or major support level has been broken to confirm a negative shift in momentum. REVERSAL strategies should be avoided as any positive signal is more likely an indication that the underlying trend is going to resume. SELL BREAKOUT strategies below 1189 can be profitable but they are aggressive and should look to take profits at 1181.3 and potentially REVERSE long at support targets. The trade is counter trend so avoid any negative commitments. Only under 1181.3 can this MKT let loose to the downside targeting 1162.1.
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 off 1189 and 1181.3 are recommended over a FADE strategies, which should have at least 1 if not 2 challenges to the support integrity before executing a long off it. BREAKOUT strategies above 1204.4 can risk a little more if current events and other MKTs of confluence confirm a positive posture. If not a better approach would be to FADE a negative "squeeze" reaction after a positive breakout signal down to 1196.7 as the neutral technical position can keep the trend sideways.
Note: The MKT has produced a big technical signal against the current trend. Be aware that the negative action may be a 1-day event with the positive trend quickly re-establishing itself. If the MKT is really going to turn it should remain hard pressed and provide little or no relief.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
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