- Technically the MKT is in a positive posture and as long as it continues to hold structure, further gains should be expected. If the integrity of the previous session low remains intact, look for excuses to get long.
- On the SELL side UP FADE strategies are valid but profit targets and risk management should be tight. REVERSAL strategies should be applied only at the UP and +c after an exhaustive signal. Use DP BREAKOUT strategies as a signal to FADE a positive reaction against the DIR. Only until the MKT breaks the positive structure are sell signals an opportunity.
- On the BUY side BREAKOUT, FADE and REVERSAL are recommended as the MKT is bid and all buy signals are valid opportunity. If stopped out at or near the low tic of a reaction and the MKT is not following through to the downside, look to re-enter using the recent squeeze low as a stop. If the MKT breaks structure, de-leverage and be more selective as the likelihood of a sideways trade is high.
Today's PRICE MAP Performance for YM
Wrap Up
- With an MC Value +4 the S&P is in a BULL TREND and the expectation is for the market to continue to build positive structure, making higher move highs and higher move loves. After the market sold off rapidly in the overnight session, the positive structure had been broken, signalling traders to lean on the OPTIMAL HEDGE TACTIC. By monitoring the RSI indicator, traders were able to spot the BULLISH DIVERGENCE occurring as the price made new lows that failed to be confirmed by the indicator. This signal coincided with our KEY INFLECTION PIVOT at the R Level which allowed traders to get long the market from the R Level and ride the trade up to the DIR.
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