- 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 DAX
Wrap Up
- In a BULL TREND CORRECTION market state with the R Level at the minor level below the DP, the analyst is saying that any sort of corrective pullback to the R Level is an opportunity to get LONG the market with the expectation for the underlying BULL TREND to continue. After respecting the R Level on multiple tests from 6-7:30 am CT, the market eventually penetrated the R Level just after 9:30 am CT. The market failed to follow through the DT1 and quickly reversed back above our R Level. By keeping an eye on our MOMENTUM indicator (RSI), traders were able to notice the BULLISH DIVERGENCE that occurred in the indicator, and get long the market from the R Level. After rallying back into our Critical Range, traders were given an opportunity to net profits at the DIR around 10 am CT.
