** BULL TREND CORRECTION **
The MKT is holding firm but remains in a corrective posture and is technically "on the fence". Key off the 630.10 Inflection Pivot for an indication of the session tone.
On the SELL side accept FADE signals only on the 2nd or 3rd confirmation against 630.10. REVERSAL strategies should only be done off 630.10 or the previous session high point [633.40] and will immediately work if they are going to. Keep position and risk management tight on these trades. SELL BREAKOUT strategies below 618.70 will work better as a signal for a FADE against the 624.40 Directional resistance with profit targets at 618.70. The underlying tone is positive and negative follow through is not expected.
On the BUY side accept REVERSAL signals off all major inflection levels [618.70, 613.00 and 607.30], expecting the underlying positive momentum to resume. FADE strategies will work better with confirmation as the MKT is in a corrective state and will be probing lower looking for soft spots. Work any BUY BREAKOUT strategies above 630.10 as any positive shift in momentum has the potential to be the start of the next leg higher.
Note: The MKT is in a corrective position and sharp negative sell offs are not expected to follow through. If after a break the MKT stabilizes and starts to build structure, look for buy opportunities and work it until that structure is broken.
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.
