DAX INDEX

Today's MARKET STATE DAX INDEX **NEUTRAL POSITIVE SHIFT**

- Technically the MKT has produced a positive signal against a negative trend. On the SELL side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the negative momentum is going to resume. UP REVERSAL strategies are recommended over a FADE, which should have at least 1 if not 2 challenges to its integrity before executing a short sale against it. A better approach to a straight DP BREAKOUT strategy is to FADE a positive "squeeze" reaction after a negative breakdown signal against the DIR.
- On the BUY side avoid DIR and DP FADE strategies until after the previous session high point or major resistance has been taken out to confirm a break in momentum. Until then, a better opportunity will be a DP REVERSAL strategy. UP BUY BREAKOUT strategies can be profitable but they are aggressive and should look to take profits and potentially REVERSE short at resistance targets.

Today's PRICE MAP Performance for DAX

Wrap Up

Today the DAX INDEX market gave traders an opportunity to execute the optimal trade of the session at the DP R.  In a NEUTRAL POSITIVE SHIFT market state, there has been a positive signal in an underlying negative market.  The R Level at the DP represents the sentiment bias, indicating that the opportunity is on the long side above this level.  The market threatened a negative transitional move at 3:45 am CT when the market traded below the DP.  However, this breakout signal remains unconfirmed above the 7775.0 minor level.  The market was unable to take out this minor level and produced a BUY DP REVERSAL opportunity with confirmation in the RSI.  This proved to be the trade of the session as the market found support at the DP R and eventually made it up to the DIR where profits could have been realized.