- The MKT has produced a big negative signal against an underlying positive trend. On the SELL side accept UP FADE signals on the 1st press into the area only. REVERSAL strategies should only be done off the UP or the previous session high point and will immediately work if they are going to. Keep position and risk management tight on these trades. SELL DIR and DP BREAKOUT strategies are aggressive but do have potential to be the start of a larger corrective turn. Keep risk management tight.
- On the BUY side accept REVERSAL signals off all major inflection levels, expecting the underlying positive momentum to resume. DP FADE strategies will work better with confirmation as the MKT is in a corrective state and will be probing lower looking for soft spots. Work any BUY DIR and UP BREAKOUT strategies as any positive shift in momentum has the potential to be the start of the next leg higher. DIR FADE strategies after the UP Breakout should use greater leverage.
Today's PRICE MAP Performance for TF
- The E-MINI RUSSELL 2000 has produced a shift in sentiment and has presented traders with a negative signal in an underlying bull market. The R Level is at the previous sessions high and our market commentary says that if the UP is to come into play, it should be used to SELL a REVERSAL off the previous session highs. The market rallied up through the UP, but failed to confirm the move by stopping short of the minor level at 817.20. The market then sold off below the R had a brief pop above the R which created a LOWER high. From here we saw an exhaustive sell off from the R. Price action was setup perfectly for a SELL R REVERSAL strategy off the previous session highs as the price traded above the highs, reversed back below the R, and then created negative structure before hosting an exhaustive sell off. The market plummeted from 6:30 A.M. until around 8:00, where it had a brief bounce off the DIR before continuing lower. The market eventually found support at the DP a little after 9:00 A.M., presenting a perfect opportunity for traders to cover their short position and realize a nice profit.
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