-Technically the MKT has the potential for appositive turn. Opportunity exists on both sides, however
there is a better chance of an acceleration to the upside if the integrity of
the previous session low remains intact.
On the SEL side avoid UP and DIR DAFE strategies until after the previous
session low point has been broken. Until
then, a better opportunity will be a UP REVERSAL strategy. The idea is that the transition trade is over
and a negative shift back into a NEUTRAL DIGESTION is expected. DP BREAKOUT strategies can be profitable but
they are aggressive. Risk less, go for
more.
-On the BUY side accept BREAKOUT, FADE and REVERSAL
strategies with the expectation that the current positive transition will
continue. Keep aggressive position
management on UP BREAKOUT strategies as the MKT is still in the neutral zone
and has yet to commit to a new trend. A
more conservative strategy would be to wait for negative reactions after a positive
signal to FADE the DIR.
Today's PRICE MAP Performance for SP
- Today in the SP 500 Futures market, we have a NEUTRAL DIGESTION TRANSITION market state, signalling to traders that if the R Level remains intact, the market has the potential to transition higher. In the overnight session, we saw a strong move up to the UP. Being cognizant of this overnight action allowed traders to identify the opportunity for the session. Our market commentary tells us that BUY UP BREAKOUT strategies are aggressive, and a more conservative strategy would be to wait for a negative reaction back to the DIR after a positive breakout from the UP to enter the market from the long side. The sell off just after 10 A.M. was the negative reaction we were looking for to get long the market from the DIR. As it played out, the market held structure at the DIR perfectly at 10:45 A.M. allowing traders to execute a BUY DIR FADE strategy, taking profits at the UP.
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