- The MKT has a slight negative bias in a difficult "choppy" trade. On the SELL side DP BREAKOUT strategies are valid but should expect a laborious trade. UP and UT1 FADE and REVERSAL strategies are recommended but profit should be taken at initial targets. The probability is to the downside today but is not a day to press it.
- On the BUY side avoid UP BREAKOUT strategies but rather FADE a negative reaction after a positive breakout signal at the DIR. DP REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any DP FADE trades should get confirmation before executing. Position management adjustments should be anticipated for all longs as sideways trading conditions can quickly erase profits.
Today's PRICE MAP Performance for SP
Wrap Up
- Today in the S&P 500 futures market, our optimal hedge strategy proved effective as the market broke out of its digestive posture and hosted a major sell off. Our optimal hedge strategy in a NEUTRAL DIGESTION market state is a SELL R BREAKOUT strategy. The yellow circle / arrow highlights the MA crossover that signals traders to accept the SELL BREAKOUT signal. Also, it is important to note the negative structure being built throughout the entire session. Just after 10:30 am CT, traders are given the SELL R BREAKOUT strategy. This trade is validated around noon when the market puts in a LOWER move high that fails to trade above the R Level. Our expectation for this trade is for a move to the DT2. The market sold off sharply this afternoon, allowing traders to close out their shorts around 2:30 at the DT2 profit target.
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