NASDAQ 100

Today's MARKET STATE for NASDAQ 100: **NEUTRAL DIGESTION TRANSITION**
 

- MKT sentiment is leaning negative and will outweigh the buy side if the integrity of the previous session high remains intact.

- On the SELL side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current negative transition will continue. Keep aggressive position management on DP 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 positive reactions after a negative signal to FADE the DIR.

- On the BUY side avoid DP FADE strategies until after the previous session high point has been taken out. Until then, a better opportunity will be a DP REVERSAL strategy. The idea is that the transition trade is over and a positive shift back into a NEUTRAL DIGESTION is expected. UP BREAKOUT strategies can be profitable but they are aggressive. Risk less, go for more.

Today's PRICE MAP Performance for ND

 

Wrap Up
- Today in the NASDAQ 100 market, we had a NEUTRAL DIGESTION TRANSITION market state with the possibility of the market transitioning lower.  Since the market is in a NEUTRAL Primary Technical State, traders should key off of the Critical Range (UP - DP) as the expected trading range.  Our market commentary tells us that SELL FADE and REVERSAL strategies are valid; however, risk management should be kept tight.  At 9 AM the market gave us a "head fake" above our expected level of Resistance at the UP, then quickly retraced back into the Critical Range.  This provided traders with an opportunity to execute a SELL UP REVERSAL strategy, taking profits at the DIR.  The market again tested the UP, failing to produce any upside follow-through.  This gave us another opportunity to execute a SELL UP REVERSAL trade at 10:45 AM, taking profits at the DIR around 2:15 PM.