- The MKT has a slight negative bias in a difficult "choppy" trade. On the SELL side DP BREAKOUT strategies are valid but should expect a laborious trade. UP and UT1 FADE and REVERSAL strategies are recommended but profit should be taken at initial targets. The probability is to the downside today but is not a day to press it.
- On the BUY side avoid UP BREAKOUT strategies but rather FADE a negative reaction after a positive breakout signal at the DIR. DP REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any DP FADE trades should get confirmation before executing. Position management adjustments should be anticipated for all longs as sideways trading conditions can quickly erase profits.
Today's PRICE MAP Performance for DA
Wrap Up
- In a NEUTRAL DIGESTION market state, traders should key off the structural elements of the CRITICAL RANGE for trading opportunities. Our expectation is for a sideways, chippy trading environment. With the R Level at the DP, the probability is to the upside and traders should look to accept BUY strategies. The market tested the DIR in the overnight session before eventually surpassing it around 2:15 am CT. After the DIR was breached, the market found support at this level around 7:30 am CT and allowed traders to get long the market from the DIR with a profit target at the UP. This target was achieved when the market put in an intra-day double top formation at the UP around 9 am CT.
