Technically the MKT has produced a big negative signal against a positive trend which will weigh on the MKT with all trading below the 134-04 Inflection Pivot.. Only a rise above here puts the contract back in a solid state.
On the SELL side avoid FADE strategies 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 can be profitable but they are aggressive and should look to take profits and potentially REVERSE long at support targets.
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, which should have at least 1 if not 2 challenges to the support integrity. BREAKOUT strategies can risk a little more if current events confirm a positive posture. If not a better approach would be to FADE a negative "squeeze" reaction after a positive breakout signal as the neutral technical position can keep the trend sideways.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
To learn more about JS Services Strategy Based Trading approach please contact me at info@jsservices.com . You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.
