- Technically the MKT has produced a major negative signal against a positive trend, which will remain in effect below the 9892.5 Inflection Pivot.
On the SELL side avoid FADE strategies against the 9897 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 here should be avoided as any positive signal is more likely an indication that the underlying trend is going to resume. SELL BREAKOUT strategies below the 9888 support pivot can be profitable but they are aggressive and should look to take profits and potentially REVERSE long at the 9879 and 9872 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 off the 9888 support pivot are recommended over FADE strategies, which should have at least 1 if not 2 challenges to the support integrity. BUY BREAKOUT strategies above the 9897 resistance pivot 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 at the 9892.5 directional Inflection Pivot, as the neutral technical position can keep the trend sideways.
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.
