The MKT is pressing into an exhaustive extreme and is vulnerable to a corrective trade. Respect positive structure but be ready to roll with any negative turn.
Key off the 117-215 Inflection Pivot today for an indication of the session tone. If the MKT is going to avoid a sentiment shift it will maintain a trade above here. If not a sharp negative shift is expected.
On the Sell side REVERSAL strategies off major inflection points will work best as any unsustained positive signal is expected to provide a sharp negative reaction. FADE strategies off the 118-017 resistance inflection pivot is valid but will work better after the 2nd or 3rd press into an area. BREAKOUT strategies below 117-215 are a lower probability but do have the potential to provide an emotional release.
On the Buy side FADE and REVERSAL strategies are recommended off 117-215, especially if the previous session low point remains intact. BREAKOUT strategies above 118-017 should hold structure after a resistance breach if they are going to follow through. Any break in momentum and the market will be vulnerable to drop back into a digestive trade.
Note: The MKT has stalled and may need a session or two to catch its breath or it already has. Keep an open mind and let the MKT tell you was is.
JS
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