RUSSELL 2000 INDEX Futures - FUN AND GAMES

Technically the MKT is in a BEAR TREND but in a DIGESTIVE posture. The MKT has produced a big negative signal but has yet to confirm a shift into trend mode. Look for excuses to get short with all trading below the the 611.40 Inflection Pivot.


On the SELL side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. SELL BREAKOUT strategies below 593.00 may need to be "worked" as teh big negative signal will have the sellers excited. FADE strategies after a negative breakdown signal against 602.50 are good opportunities as well and can provide favorable area to put on leverage against structure. Be more aggressive with FADE and REVERSAL strategies at 611.40 or against the previous session high point targeting the opposing digestive support. Above the previous session high point enterying after the 2nd or 3rd press into an area is recomended over stepping in front of the initial challenge.

On the BUY side BREAKOUT strategies above 611.40 are aggressive and should be entered sooner [lower] than later [higher]. Expectations should be for the MKT to make its move early in the session and not look back, holding strucutre most of the day producing a positive "reversal" signal. If the MKT digests prior to making a positive move it is more likely a short squeeze to FADE. BUY FADE strategies off 593.00 are aggressive and if they are going to work should do so on the initial test of support. Repeated tests or "confirmation" are more likely to give way to a lower trade. BUY REVERSAL strategies are not recommended as any failure is confirmation of a negative trend shift. The probability is to the downside today so don't get stubborn buying breaks.

Note: The MKT has produced a big negative signal and is flirting with a turn for the worse. If it does not follow through on any new weakness it is more likely a nuetral shift than a positive one.

JS


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RUSSELL 2000 Futures - SET TO SWING

Technically the MKT is in a NEUTRAL DIGESTIVE position with a slight negative bias. Opportunity exists on both sides of the MKT but "choppy" sideways trading conditions should be expected.

Key off the 660.30 Inflection Pivot for an indication of the session tone. This is the high point for any positive action if the contract is going to remain vulnerable to the offer.

On the SELL side BREAKOUT strategies below 627.90 are valid but should expect a laborious trade. Work any position, covering on emotional sell-offs and re-entering on any sharp pullbacks. Expect a choppy trade and be aggressive on minimizing profit give-back. FADE and REVERSAL strategies are recommended off major resistance levels. The probability is to the downside today but is not a day to press it.

On the BUY side avoid BREAKOUT strategies above 660.30 but rather FADE a negative reaction after a positive breakout signal at 644.10. REVERSAL strategies are recommended over FADE strategies off major support inflection points as "sloppy" trading conditions are expected. Any FADE trades at the 627.90 support pivot should get confirmation or a negative exhaustion or turning point signal before executing. Position management adjustments should be anticipated for all longs as sideways trading conditions can quickly erase profits.

Note: The MKT is in neutral and is more likely to go nowhere fast. Don't get stubborn however if the MKT starts to get into trend mode as the contract may just be expanding its digestive parameters producing a one way trade into the close and new extreme.

JS

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RUSSELL 2000 Index mini - CORRECTIVE SIGNAL

** BULL TREND CORRECTION **

The MKT is holding firm but remains in a corrective posture and is technically "on the fence". Key off the 630.10 Inflection Pivot for an indication of the session tone.

On the SELL side accept FADE signals only on the 2nd or 3rd confirmation against 630.10. REVERSAL strategies should only be done off 630.10 or the previous session high point [633.40] and will immediately work if they are going to. Keep position and risk management tight on these trades. SELL BREAKOUT strategies below 618.70 will work better as a signal for a FADE against the 624.40 Directional resistance with profit targets at 618.70. The underlying tone is positive and negative follow through is not expected.

On the BUY side accept REVERSAL signals off all major inflection levels [618.70, 613.00 and 607.30], expecting the underlying positive momentum to resume. 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 BREAKOUT strategies above 630.10 as any positive shift in momentum has the potential to be the start of the next leg higher.

Note: The MKT is in a corrective position and sharp negative sell offs are not expected to follow through. If after a break the MKT stabilizes and starts to build structure, look for buy opportunities and work it until that structure is broken.

JS

This post supports the Strategy Based Trading, which is a methodology that focuses on the applied strategy verses a specific market. The approach looks to align strategies with markets whose current technical behavior matches the strategies criteria. Please review the following CME sponsored tutorial for a complete overview of this approach.

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For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/.The Inflection Pivot levels are available as a chart overlay on the following platforms; Ninja trader, Strategy Runner and eSignal. Sign up for a Complimentary FREE Trial.