- The MKT is in a difficult sideways trade with an underlying negative tone. On the SELL side BREAKOUT, FADE and REVERSAL strategies are valid with the expectation that the underlying negative momentum is going to reassert itself. Work any UP FADE or REVERSAL strategies within the digestive range, covering any position near the DP.
- On the BUY side avoid UP BREAKOUT strategies but rather FADE a negative reaction after a positive breakout signal against the DIR. DP REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any FADE trades should get confirmation or a negative exhaustion or turning point signal before executing.
Today's PRICE MAP Performance for SF
Wrap Up
In a BEAR TREND DIGESTION signature market state, the sentiment is NEGATIVE below the R Level with the expectation for a negatively skewed digestive trading session. The market tested the major support pivot at the DP around 1:30 am CT, illustrating that the market was respecting this level. After bottoming at the DP, the market rallied back up to the DIR where it put in a BEARISH DIVERGENCE signal in the RSI. Since this is a DIGESTIVE signature state, the RSI momentum oscillator will be the OPTIMAL TACTIC for confirmation of the trade. Sure enough, the BEARISH signal in the RSI signaled JS Traders to get short the market on the pullback to the DIR and ride the bearish pressure downward. For traders who missed the opportunity at 5:45 am CT from the DIR, another SELL opportunity was given when the market broke down from the DP support pivot on a "strong bar", indicating the overwhelming selling pressure. The market continued to build negative structure down to the second major support pivot at the DT1 where it stabilized for the remainder of the session.
