- The MKT is in a digestive position with a negative technical bias. On the SELL side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. DP SELL BREAKOUT strategies should just "go" and not look back. DIR FADE strategies after a negative breakdown signal are good opportunities as well. If the trade just "hangs around" after a breakdown signal, it is likely that more digestive action is to come. Be more aggressive with UP FADE and REVERSAL strategies and resistance inflection points at or against the previous session high point.
- On the BUY side DIR and UP BREAKOUT strategies are aggressive and should hold structure if they are good. DP BUY FADE strategies are aggressive and if they are going to work should do so on the initial test of support. Repeated tests are more likely to give way to a lower trade. BUY REVERSAL strategies are recommended off the DP only, as the MKT is vulnerable to a negative trend shift. The probability is to the downside today so don't get stubborn buying breaks.
Today's PRICE MAP Performance for DA
- Today we had an MC Value of -2 in a NEUTRAL DIGESTION Market State. Although there is a NEGATIVE technical bias, the analyst felt that the DIR was the most important technical level, the "breaking point" if you will. If the R Level remains unbroken, this is a positive sign that market structure is holding, and a move higher is expected. The market moved higher throughout the morning session. In a Neutral market state, our expectation for a follow through on a move is low. As the price approached the UT1 just before 8 A.M., traders could have been looking for a corrective move as the expectation is for a sideways trading market. As it happened, a sharp corrective sell off ensued and took prices all the way down to the DIR, where that level held structure. The fact that the sell off was halted and respected the R Level signals the trader that now is the opportunity to get long with a BUY DIR FADE strategy. This trade wasted no time in turning profitable, as the price rallied right back up to the UT1 at 10:30 when profits should have been realized.
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