EURO STOXX 50

Today's MARKET STATE EURO STOXX 50 **NEUTRAL DIGESTION**

- The MKT is in a sideways digestive position with a slight positive bias.
- On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal. UP and UT1 REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any UP FADE trades should get confirmation first.
- On the BUY side UP BREAKOUT strategies are valid but should expect a laborious trade. Work any position, selling into emotional surges and re-entering on any sharp pullbacks. Expect a choppy trade and be aggressive on minimizing profit give-back. DP and DT1 FADE and REVERSAL strategies are recommended.

Today's PRICE MAP Performance for DSX

Wrap Up

Successful trading is a function of identifying market state, structure and strategy.  JS Services MC Value of +3 identified the EURO STOXX 50 to be in a NEUTRAL DIGESTION market state.  In a NON-TREND market state, expectations are for a sideways, trendless trading environment, conducive to technical momentum indicators.  JS Service Pricemap identifies the key STRUCTURAL pivots for the session and our market commentary provides insight as to which strategies should be used.  The R Level at the DIR represents the OPTIMAL ENTRY point for the session.  Armed with this knowledge, traders were able to capitalize on the BUY DIR FADE opportunity that presented itself just after 5 am CT this morning.  Notice too, that the RSI was at a reading BELOW 30, indicating that the market was overextended to the downside.  This oversold reading confirmed the buying opportunity and got traders in the market from the optimal entry point.  For traders who missed the initial buying opportunity from the DIR, the DSX market generated another buy signal, this time with a UP BREAKOUT strategy.  A confirmed breakout of the critical range signals a change from a non-trending environment to a transitioning environment.  Our 21-period SMA had crossed above the 55-period SMA (3-min chart) and generated the "buy" signal.  As you can see, after the breakout occurred around 9:15 am CT, the moving average "band" provided a support area for future price action.  The markets ability to build + structure after our entry signal at the DIR R allowed traders to ride the long side of the market all the way up to the UT1.  By identifying the technical playing field and highlighting the key inflection points for the session, traders were able to ANTICIPATE the opportunity at the DIR R and net some nice profits.