- Technically the MKT is positive, however today it is on the fence as to its immediate direction with opportunity on both sides of the MKT.
- On the SELL side accept FADE and REVERSAL signals at the UP only. The underlying momentum is up, so keep position management and profit targets aggressive on any counter trend trades. Avoid DP BREAKOUT strategies as follow through in either direction is not expected. A DIR FADE strategy after a downside breakout is an opportunity but look to take profits at the DP.
- On the BUY side accept FADE and REVERSAL strategies off the DP and DT1 with the expectation that any test may need to build a base before it can mount a sustained positive push. UP BREAKOUT strategies are valid as well as any "pullback" opportunity following a positive breakout signal for a BUY DIR FADE strategy.
Today's PRICE MAP Performance for ND
- A good day for profits in the NASDAQ 100 today as the market performed to expectations. In a BULL TREND DIGESTION Market State with the R Level just below the DP, our expectation is that the BULL TREND is still in play as long as price respects this level. As stated in our market commentary (STRATEGY), we are looking to BUY FADE and REVERSAL strategies off of the DP and DT1. As our R Level is between these two levels, a BUY R FADE strategy is the highest risk-reward trade for the day. After respecting the R Level before 2:30 A.M. the market began to sell off just after 8:30. The R Level held support at 9 A.M. and gave traders an opportunity to execute the BUY R FADE trade we were looking for. After encountering support at the R, the market rallied through the DP and up to around 2853.00, just below the DIR (our target). If you hadn't cashed in on your trade at 10 A.M., the market eventually pushed through the DIR around 2:30 P.M. without ever trading back below the DP.
