- 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 YM
Wrap Up
- After producing a negative technical signal, the DOW FUTURES had an MC Value of +1 and a BULL TREND CORRECTION market state. The R Level at the DIR identifies this as the key inflection pivot for the session. If the market opens up below the R Level and respects that level, the corrective trade remains in play. However, the market opened up slightly above the R Level, signaling the opportunity was to the up side above this level. More than likely a digestive trading day is expected unless the market gives a BREAKOUT signal from the UP, in which case a continuation of the underlying BULL TREND should be anticipated. As it played out, the market did take on a digestive posture, giving traders the opportunity to get long from the DIR and take profits at the UP.
