CRUDE OIL

Today's MARKET STATE for CRUDE OIL: **BEAR TREND CORRECTION**

- Technically the MKT has produced a counter trend signal and may be set for a short term shift in sentiment. On the SELL side REVERSAL strategies are recommended over FADES as the corrective trading environment is expected to produce some false positives on resistance violations as it probes higher.  DIR and DP BREAKOUT strategies should just "go" with expectations that the negative momentum is going to resume course. Anticipate profit management adjustments as sentiment can turn quickly.

- On the BUY side DIR and UP BREAKOUT should just "go" and hold structure. Risk less and go for more with the expectations of an emotional shift in sentiment supporting the technical positive signal. A break in the momentum of the positive signal and this strategy should be avoided as follow through in either direction is unlikely. Avoid DP REVERSAL strategies, as any break in structure is a sign that the Bear Trend is going to reestablish itself. FADE strategies off the DP should be entered sooner "higher" than later " lower" with expectations that the corrective rally is going to continue to run and keep pace.

Today's PRICE MAP Performance for CL

Wrap Up
- Today we have a BEAR TREND CORRECTION Market State, and an MC Value of +1.  With the R Level at the DP, the probability is for a counter trend rally above the R Level.  The market digested between the DIR and the minor level within the Critical Range until about 8:30 A.M. when we were given a BUY DIR FADE opportunity above the R Level.  This strategy is in line with our expectations for the day, as a counter trend signal has been produced and the placement of the R Level at the DP confirms the positive posture.  The market continued to gain throughout the morning, and achieved the UP a little before 10 A.M.  Since this is still a BEAR state, the trader must respect the underlying trend and implement tight position management as to minimize profit giveback.  The market digested around the UP for a few hours, and eventually met resistance at the minor level between the UP and UT1.