Technically the MKT is pressing the EXTREME of a BEAR TREND move and may need a sideways session or two before it can extend lower. Don't risk too much hoping for it however as the momentum is down and sellers have probability on there side.
1043.50 is the Inflection Pivot keeping the Index in an aggressive sell posture. As long as the MKT is below here it is vulnerable to further losses. Key off the 1012 support pivot as this is the breaking point for a new move south. A failure here should pull the rug on the contract, if not a sharp positive reaction should be expected.
On the SELL side downside BREAKOUT strategies are valid below 1012 but will struggle sustaining new move lows at this time. Get in to these trades sooner (higher) than later (lower) as new weakness is expected to be stop and go. A more conservative strategy is to FADE a positive reaction after a negative breakdown signal against 1027.75 and even better to wait for a REVERSAL off this corrective rise rather than stepping in front of int. FADE and REVERSAL are recommended at 1043.50 especially after a sharp corrective rise. The MKT is negative but is also extended and the probability of a corrective rise is high.. Wait for an exhaustive signals or confirmation to jump on.
On the BUY side BREAKOUT strategies above 1043.50 should have aggressive trail stops and tighter profit targets. There is a good chance for a corrective turn but profit targets and position management should be tight as this is more likely a rally to sell. If you get on, ride it until structure is broken and then look to go the other way. BUY REVERSAL strategies off 1012 and in the 975.25-962.50 area will provide opportunity off of lower support inflections but will work best after a sharp trade lower through major support. Expectations are for no follow through not a reversal of sentimnet. Keep risk management and profit targets tight to reduce giveback as the underlying technical foundation today is negative. Avoid FADE BUYS as the negative trend remains enforce with sell FADE opportunities the better place to step out.
Note: Just because the MKT is extended does not mean it cannot get more extended. Wait for a signal don't force one.
JS
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