The MKT is in Neutral but has produced a big negative signal. Stay nimble. If the signal does not follow through the potential for a whiplash rally is high.Key of the 12282 Inflection Pivot for an indication of the session tone.
On the SELL side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. SELL BREAKOUT strategies below 12246 may need to be "worked" as the neutral position will produce some starts and stops. FADE strategies after a negative breakdown signal against the 12282 Directional are good opportunities as well but expectation should be for the MKT to quickly move back under the failed support. If the trade just "hangs around" is more likely a signal that more digestive action is coming and a retest of resistance should be expected. Be more aggressive with FADE and REVERSAL strategies at 12318 or against the previous session high point targeting the opposing digestive support at 12246. Above the previous session high point enterying after the 2nd or 3rd press into an area is recomended over stepping in front of the initial challenge.
On the BUY side BREAKOUT strategies off 12282 or above 12318 are aggressive but do have potential if yesterday's signal was false producing a nice squeeze rally. BUY FADE strategies at 12246 are aggressive as well and if they are going to work should do so on the initial test of support. Repeated tests or "confirmation" are more likely to give way to a lower trade. BUY REVERSAL strategies at 12246 and 12282 are recommended off the session initial major support only, as the MKT is vulnerable to a negative trend shift and any new weakness is confirmation to yesterday's signal.
Note: The MKT has produced a big negative signal in a neutral environment. This is either the beging of a new trend move south or a press into the negative extreme which is about to snap back. Don't get tied into either opinion and let the MKT tell you what is.
JS
Join our "LIVE" TRADE ROOM and learn JS Services Strategy Based Trading approach using CLEARBOX automated strategies! For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.
