Technically the MKT is in a NEUTRAL CORRECTIVE state producing a big positive signal against a negative trend. Opportunity exists on both sides of the MKT, however the positive signal will remain in play above the 70.23 Inflection Pivot.
On the SELL side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the negative momentum is going to resume. REVERSAL strategies are recommended over a FADE strategies at the 72.17 resistance pivot, which should have at least 1 if not 2 challenges to the integrity of the resistance before executing a sale against it. BREAKOUT strategies below 70.23 can risk a little more if current events and other MKTs of confluence confirm a negative posture. If not a better approach would be to FADE a positive "squeeze" reaction after a negative breakdown signal against the 71.20 Directional as the neutral technical position can keep the trend sideways.
On the BUY side avoid FADE strategies off 70.23 until after the previous session high point or major resistance level has been taken out to confirm a positive shift in momentum. REVERSAL strategies should be avoided as any negative signal is more likely an indication that the underlying trend is going to resume. BUY BREAKOUT strategies above 72.17 can be profitable but they are aggressive and should look to take profits and potentially REVERSE short at resistance targets. The trade is counter trend so avoid any positive commitments.
Note: The MKT has produced a big technical signal against the current trend. Be aware that the positive action may be a 1-day event with the negative trend quickly re-establishing itself. If the MKT is really going to turn it should remain firm and not look back.
JS
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