- Technically the MKT is vulnerable to further
"corrective" negative action, however today the indicators are
balanced, putting the outlook "on the fence" with the potential of
being a turning point session. On the SELL side accept BREAKOUT and FADE
strategies off major inflection points with the expectation that any trade has
the potential to be the start of the next negative move. If the market is
indeed going to transition lower it will hold negative structure. Any break in
momentum has the potential to be a positive turning point and an end to the
"corrective" trade. DP BREAKOUT strategies can risk little more if
current events and other MKTs of confluence confirm a negative posture.
- On the BUY side accept BREAKOUT, FADE and REVERSAL
strategies off major inflection points with the expectation that any trade has
the potential to be the start of a positive shift. Use aggressive position
management to reduce profit giveback as the neutral posture can produce some
false signals. If the market is going to go, it will hold structure and not
look back. If not, a choppy trend-less trading environment should be expected.
Today's PRICE MAP Performance for SP
-The S&P 500 Index had a big move today that performed to our expectations for the NEUTRAL NEGATIVE SHIFT Market State. In this state, if the market is going to advance, it is expected to hold structure and "not look back". The price traded above the R Level, telling the trader that above this level, the probability is to the upside. We then saw a squeeze back down to the R Level around 7:00 A.M. This generated a VERY important "TELL" as to what the rest of the day had in store for us. The market HELD STRUCTURE at the R Level, confirming the positive move and validating a BUY R BREAKOUT strategy. From here, the market made higher highs and higher lows throughout the trading session, maintaining POSITIVE STRUCTURE. The market eventually leveled off, and if profits weren't realized around 11:00 A.M. when the market tested the UT2, the position must have been closed just after 2:30 P.M. when the market BROKE STRUCTURE by making a lower low.
