Technically the MKT is in a BEAR TREND and has produced a negative signal. The MKT is vulnerable and all sell signals should be considered below the 1047.75 Inflection Pivot. If the negative momentum is going to follow through the market will struggle to maintain a trade above here. If so a return to a firm sideways trade is the forecast.
On the SELL side accept all BREAKOUT, FADE and REVERSAL signals. If the MKT produces a BREAKOUT signal early in the session below 1037.25 it should just "go" and not look back. Beware of any break in early negative structure, as a corrective rally up to 1056.25 and 1066 resistance is a likely scenario. Be selective and wait for an exhaustive signal to re-enter to avoid selling the corrective rally all the way up to your "ideal" sell points but with no confidence left or dry powder. Practice good size management on this move accepting sell signals but leveraging up at the resistance turning points. Anticipate a price "zone" around a major resistance point to FADE. Have a plan and be ready. If your stop gets hit and the MKT does not immediately follow through, consider re-entering, even doubling up if there is structure to define low risk. ONLY keep an aggressive BEAR posture below 1047.75. Above here the MKT is vulnerable to a rally with a breach of 1056.25 the confirm point.
On the BUY side REVERSAL strategies can be executed off of major support levels but preferably after an emotional sell off early in the session. This is an aggressive strategy and any profits should be realized at the previous support failure points. Expectations should be for an immediate "V" bottom turn with the MKT quickly moving away from the area or a gradual rise with higher lows after a lower exhaustive signal. Avoid FADE BUYS even with confirmation, as this is more likely a plateau for a BREAKOUT SELL strategy. BUY BREAKOUT strategies above 1047.75 should just go producing a low volatility one way trade higher. Any stops and go action should be viewed as negative.
Note: The MKT has produced a negative signal and should follow through with authority from the get go if it is serious. If not expect some starts and stops. Be patient and wait for opportunity. A held trade above the 1047.75 has the potential to bounce this contract back on its feet. Don't fight positive structure.
JS
* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .
