The MKT has produced a big positive signal and is flirting with a resumption of the BULL TREND, however it currently remains vulnerable to further corrective action with all trading below the 12872 Inflection Pivot. This is the hurdle the market must overcome to confirm yesterday's positive signal.
On the SELL side accept FADE strategies on the initial test against 12872 or at the previous session high only. Repeated tests are expected to give way to higher prices as above the previous session high the corrective structure will be broken confirming the positive signal. Avoid REVERSAL strategies as any violations of resistance are positive. SELL BREAKOUT strategies below 12823 and 12776 are valid but aggressive. The MKT has produced a positive signal so if it does not follow through a negative turn could have some potential. Either way have a defined exit strategy as any negative action will be counter trend.
On the BUY side accept REVERSAL signals off all major inflection levels expecting the underlying positive tone to resume course. FADE strategies off 12776 should work on the initial test. The MKT has generated a positive signal and if it is going to follow through it should just go. Work any BUY BREAKOUT strategies above 12872 as any positive shift in momentum has the potential to be the start of the next leg higher.
Note: the MKT has produced a major technical buy signal and is poised for a resumption of the BULL TREND. Look for excuses to get long above 12872 and be weary of a difficult trade below this price point..
JS
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