- The MKT is flirting with a shift in sentiment. Opportunity exists on both sides with the potential for a decisive session. Key off the R LEVEL sentiment bias for the “tell” to the MKTs next move. On the SELL side FADE and REVERSAL strategies should be executed off the UP only, as any positive showing has the potential to be the start of something bigger. DP BREAKOUT strategies may need to be "worked" as false starts and stops should be expected. Use aggressive position and risk management on the initial failure signal. If stopped out, back off and look to FADE a positive push against the DIR rather than continue to press it in the hole.
- On the BUY side UP BREAKOUT strategies should just go if the MKT is going to transition higher. A sideways trade after a breakout signal is a sign of weakness, foreshadowing a retest of support before a new move north. DP FADE and REVERSAL strategies are valid as well as support levels near the previous session low. A break under the previous session low point is a negative signal that has the MKT vulnerable to a return to the offer.
Today's PRICE MAP Performance for SP
Wrap Up
- The R Level was our KEY INFLECTION point today in the S&P 500 market as the market was flirting with a shift in sentiment. The R Level held Resistance at the UP at 7 am CT proving that this was indeed the key inflection point in the market. After stabilizing at the minor level at 1494.50, the market made another run to the UP. The market penetrated our key inflection point, giving traders a BUY UP BREAKOUT opportunity. This is a signal that traders should be anticipating as the market is in a TRANSITION, and the BREAKOUT of the Critical Range confirms this. If the market is indeed going to transition higher, it should just "go" and not reverse back into the Critical Range. This was the case, as the market continued to rally, surpassing the UT1, and eventually achieving our BREAKOUT target of 2 APMD at the UT2 at 11:30 am CT. Also notice the MA cross that occurred just after 8:30 am CT confirming the BUY signal. Keep it simple. The MA cross told us to accept BUY strategies, our R Level identified the optimal entry point and the UT2 served as our exit level to take profits on a well-executed trade.
