DOW FUTURES

Today's MARKET STATE for DOW FUTURES **NEUTRAL DIGESTION**

-The MKT is in a sideways digestive position with a slight positive bias.

-On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal.  UP and UT1 REVERSAL strategies are recommended over FADE strategies as “sloppy” trading conditions are expected.  Any UP FADE trades should get confirmation.

-On the BUY side UP BREAKOUT strategies are valid but should expect a laborious trade.  Work any position, selling into emotional surges and re-entering on any sharp pullbacks.  Expect a choppy trade and be aggressive on minimizing profit give-back.  DP and DT1 FADE and REVERSAL strategies are recommended.

Today's PRICE MAP Performance for YM

 

Wrap Up
- With an MC Value of 0 the DOW FUTURES market is in a NEUTRAL DIGESTION market state.  Given this information, we know to expect a sideways, choppy trade within the Critical Range.  After the R Level was taken out early in the session, traders should have looked to SELL any corrective rallies back up to the DIR where our R Level was.  The SELL R FADE strategy worked on two different occasions, at 9 A.M. and again at 11 A.M. making it back down to the lower end of our Critical range at the DP on both trades.