Technically the MKT is in a BEAR TREND ACCELERATION and flirting with further losses with all trading below the 81.13 Inflection Pivot. The MKT has produced a big negative signal and any positive corrective action is expected to be short lived with only one upside "stop sweep" if the negative momentum is going to play out. Any held strength and repeated probe higher is a sign that the trade will turn digestive. This does not take away from the negative bias but does limit the profit potential for any new sales in the session.
On the SELL side accept FADE, REVERSAL and BREAKOUT. BREAKOUT strategies below the 79.59 support pivot may need to be "worked" as the MKT is on edge and will be emotional, producing some starts and stops before it drops. FADE strategies are recommended over REVERSAL strategies at 81.13as the MKT is expected to hold lower structure and any momentum shift should be considered a potential positive corrective turn.
On the BUY side avoid REVERSAL strategies off major support levels as these signals are more likely short squeeze rallies and opportunities to SELL into and FADE. BREAKOUT strategies above the previous session high or the 81.13 resistance level are a long shot, so risk less and go for more. Any BUY FADE strategies off the 79.59 support should have confirmation and are not recommended if the integrity of the previous session high is intact. After a break in the negative structure confirmed support levels can be used for short term reactions using aggressive position management.
Note: The MKT is on edge and is vulnerable to a big drop. If the previous session high is intact its just a matter of time before the sellers try to overwhelm the MKT. Look for excuses to get short. If the previous session high is breached opportunity will be on both sides of the MKT, however the bias still rests with the Bears.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
