- The MKT has produced a negative signal against an underlying positive trend. On the SELL side accept UP FADE signals on the 1st press into the area only. REVERSAL strategies should only be done off the UP or the previous session high point and will immediately work if they are going to. Keep position and risk management tight on these trades. SELL DIR and DP BREAKOUT strategies are aggressive but do have potential to be the start of a larger corrective turn. Keep risk management tight.
- On the BUY side accept REVERSAL signals off all major inflection levels, expecting the underlying positive momentum to resume. DP FADE strategies will work better with confirmation as the MKT is in a corrective state and will be probing lower, looking for soft spots. Work any BUY DIR and UP BREAKOUT strategies as any positive shift in momentum has the potential to be the start of the next leg higher. DIR FADE strategies after the UP Breakout should use greater leverage.
Today's PRICE MAP Performance for ND
Wrap Up
- Today in the NASDAQ 100 futures market we had an impressive follow through on the CORRECTIVE signal. Our market commentary tells us that SELL UP BREAKOUT strategies are aggressive; however, they do have the potential to be the start of the next move lower. Using our MA crossover tactic, along with the appearance of a strong bar with a lower close through our key area of support at the DP, the market is telling us to accept the SELL DP BREAKOUT strategy. This strategy proved successful as the market continued to make new lows, eventually making it down to our target area around the DT2 just after 1 pm CT.
