-The MKT has produced a big negative signal against an underlying positive trend. On the SELL side accept UP FADE
signals on the 1st or 2nd press into the area only. REVERSAL strategies should only be done off
the UP or the previous session high point and will immediately work if they are
going to. Keep position management tight
on these trades. SELL DP BREAKOUT
strategies are aggressive but do have potential to be the start of a larger
corrective turn. Keep risk management
tight.
-On the BUY side accept REVERSAL signals off all major
inflection levels, expecting the underlying positive momentum to resume. DP FADE strategies will work better with
confirmation as the MKT is in a corrective state and will be probing lower
looking for soft spots. Work any BUY DIR
and UP BREAKOUT strategies as any positive shift in momentum has the potential
to be the start of the next leg higher.
DIR FADE strategies after the UP Breakout should use greater leverage.
Today's PRICE MAP Performance for YM
- Today in the DOW FUTURES market we had a corrective signal against an underlying positive trend. If we are to get any follow through on the corrective signal, it should occur BELOW the R Level. Around 8:45 A.M. price traded above the R Level signaling to traders that the underlying positive trend may be resuming. After selling off back to the R around 9:30, the market found support at this level, allowing traders to get long the market from the R Level in anticipation of a resumption of the positive trend. This proved to be the correct trade as the market rallied past the UT1 to end the session.
