Thursday, October 25, 2012

S&P 500

Today's MARKET STATE for S&P 500: **BEAR TREND**


-Technically the MKT is vulnerable to the offer. On the SELL side accept all BREAKOUT, FADE, and REVERSAL signals.  The MKT is on edge and any negative signal, especially below the previous session high, is an opportunity.  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
- On the BUY side REVERSAL strategies can be executed off of major support levels but preferably after an emotional sell off. This is an aggressive strategy and any profits should be realized at the previous support failure points.  Avoid DP FADE BUYS eve with confirmation, as this is more likely a plateau for a BREAKOUT SELL strategy.  UP BREAKOUT strategies are not recommended but do have a better chance of success than a DP FADE.

Today's PRICE MAP Performance for SP







Wrap Up
Today the market performed to expectations and gave traders the opportunity for major profits.  In a BEAR TREND environment, our market commentary tells us that we should accept all SELL signals at major inflection points.  With the R Level at the UP, we know that a SELL strategy at the R presents us with our highest risk/reward trade.  At 8 AM the market gave us a "head fake" about the R Level, and then immediately corrected itself.  This was our opportunity to execute a SELL UP REVERSAL strategy with the DP as out expected target.  As it played out, the market sold off sharp, stabalized at the DIR around 10 AM and then proceeded down to our downside target at the DP.

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