Wednesday, December 5, 2012

SP 500

Today's MARKET STATE for SP 500 **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 SP





Wrap Up
- In a NEUTRAL DIGESTION market state, traders should be expecting a choppy, sideways trading environment.  Our market commentary tells us to look for BUY DP and DT1 FADE and REVERSALS as our expectation is for trading to stay within out Critical Range.  Around 10 A.M. the market gives us out BUY DP REVERSAL signal and traders were able to ride the rally all the way up to our key inflection point at the R Level.  From here, traders could have reversed and gone short the market after the R Level proved to be the key level of resistance.

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