- 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 SP
- Today in the S&P 500 futures market, there was an MC Value of +3 producing a positive tone in a NEUTRAL DIGESTION Market State. With such a positively skewed MC Value (+3), the market is prone to transitioning into a BULL TREND. In order to identify if this is happening, traders must use certain MARKET TACTICS to identify if the market is indeed going to follow through on a BREAKOUT above the UP, or if it is just producing an emotional "head fake". A Moving Average crossover system can help identify when a market is trending and serve as a "filter" for accepting BUY or SELL strategies. While trading above the R Level, the faster MA crosses above the slower MA around 7 am CT. This MA crossover tells traders that BUY strategies are valid. Our second "tell" is that the market produced a STRONG BAR breakout through the UP. These powerful bars serve as confirmation of the strength of the market move. This confluence of MA crossover and STRONG BAR signals provided us with the confidence to accept the BUY UP BREAKOUT strategy and ride the market all the way up to our UT1.
