SP500 Index - NEUTRAL NEGATIVE EXTREME

SP500 H'10 ** NEUTRAL NEGATIVE EXTREME **

Technically the MKT is extended to the downside. Avoid selling into weakness but rather anticipate positive REVERSAL opportunities off the 1075.50 Inflection Pivot.

On the SELL side accept UP FADE and REVERSAL strategies against the 1099.50 resistance pivot, expecting more of a trend-less trading environment rather than a resumption of the BEAR TREND. FADE strategies are best on the initial challenge as repeated tests will most likely give way to a corrective rally. Avoid these strategies above the previous session high point as the potential for a strong fast positive turn is real. DP BREAKOUT strategies under 1075.50 will be enticing but are more likely a "trap".

On the BUY side FADE and REVERSAL strategies off the 1075.50 and 1063.50 support inflection points are qualified, however with a 1075.50 FADE use confirmation after the 2nd or 3rd test. REVERSAL strategies are better at 1075.50 and the strategy be used as a "trail" to any break, with the expectations of the MKT producing a sharp "V" bottom or exhaustive turning point reversal signal. UP BREAKOUT strategies above 1099.50 have the potential to pay off as the start of a new corrective move north.

JS

This post supports the Strategy Based Trading, which is a methodology that focuses on the applied strategy verses a specific market. The approach looks to align strategies with markets whose current technical behavior matches the strategies criteria. Please review the following CME sponsored tutorial for a complete overview of this approach.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html
For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.