DOW FUTURES

Today's MARKET STATE DOW FUTURES **NEUTRAL DIGESTION**

- 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 YM

Wrap Up

With an MC Value of -2 and the R at the UP, the DOW FUTURES market was in a NEUTRAL DIGESTION market state with a negative bias below the R Level.  If the market is going to perform to expectations, it should play host to a sideways, "choppy" trading session within the Critical Range (UP-DP).  The market market tested the upper extreme (UP) on multiple occasions during the overnight and early morning session, signalling to traders that this was indeed the key inflection pivot for the session.  The negative sentiment below the R gave traders the confidence to short the market from our optimal entry point at the UP R.  The market respected this level of resistance perfectly, and eventually started to grind lower toward the DP.  The market gave traders an opportunity to take profits at our expected level of Support, the DP.  Staying true to the NEUTRAL DIGESTION market state, the market found support at the lower end of our Critical Range and offered traders another opportunity to get LONG the market from the Support pivot at the DP targeting the DIR.  The market wasted no time as it trended higher to end the day, ultimately surpassing the DIR on the way up.