Today's MARKET STATE S&P 500 **BULL TREND**
- The MKT has just produced a big positive technical signal. On the SELL side DP BREAKOUT strategies are a low probability but valid. Risk little and go for a lot. If the MKT is going to turn sour, it should be quick and relentless. Avoid UP FADE strategies as the MKT has just produced a major buy signal and fresh gains are expected. UP REVERSAL strategies as well are not recommended, as any resistance level violation that cannot be held is more likely a squeeze for the longs, which can quickly turn positive.
- On the BUY side BREAKOUT, FADE and REVERSAL are recommended as the MKT is aggressively 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, leverage up using the squeeze low as a stop, expecting a quick reaction back above your original entry. De-leverage unless you have confluence with other indicators or like MKTs.
Today's PRICE MAP Performance for SP
Wrap Up
Today was a perfect example of how to bank profits even when the market does not perform to expectations. The S&P 500 futures produced a BULL TREND market state and the expectation is for a continuation of the positive structure as the market grinds higher. With the R Level at the DIR, the analyst is saying that if we are going to get follow through on the BULL TREND signal, the market should remain firm above the DIR and just "go". A break in this level negated the positive sentiment and a breakdown from our level of Support at the DP would signal a negative transition. As it played out, the market built NEGATIVE structure throughout the session and allowed us to utilize our HEDGE TACTIC (MA crossover) to confirm the SELL DP BREAKOUT trade. The market continued to put in lower highs and lower lows until eventually reaching our downside target at the DT2.
Today was a perfect example of how to bank profits even when the market does not perform to expectations. The S&P 500 futures produced a BULL TREND market state and the expectation is for a continuation of the positive structure as the market grinds higher. With the R Level at the DIR, the analyst is saying that if we are going to get follow through on the BULL TREND signal, the market should remain firm above the DIR and just "go". A break in this level negated the positive sentiment and a breakdown from our level of Support at the DP would signal a negative transition. As it played out, the market built NEGATIVE structure throughout the session and allowed us to utilize our HEDGE TACTIC (MA crossover) to confirm the SELL DP BREAKOUT trade. The market continued to put in lower highs and lower lows until eventually reaching our downside target at the DT2.
No comments:
Post a Comment