DAX INDEX

Today's MARKET STATE DAX INDEX **BULL TREND**

- 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 DAX

Wrap Up

Market STRUCTURE was the key today in identifying the opportunity in the DAX futures market as the early morning sell-off gave traders an opportunity to get long from the expected support pivot.  At 8 am CT the market found structural SUPPORT at the lower extreme of the Critical Range (DP).  This allowed traders the opportunity to get long the DAX from the support pivot at the DP.  This level proved to be the low of the session as the market bounced off this support pivot, and continued to rally throughout the morning session.  The market build positive structure after bottoming at the DP and allowed traders to stay in the position up to the DIR.  By identifying the key inflection pivots in the DAX index, JS Traders were able to anticipate the opportunity at the DP and capitalize on it.