SP500 U'12 - SET FOR SIDEWAYS

TECHNICAL STATE:  #NEU - NEUTRAL DIGESTION

Technically the MKT is in a NEUTRAL DIGESTIVE position with all indicators counter balanced. The MKT is "on the fence" with the potential to go either direction or nowhere. Pick your points and have no expectations. In this market state directional moves are not expected to be sustained. Opportunity exists on both sides of the market, albeit profit potential is limited and should be realized “sooner than later”. Markets that do end a session with a strong directional bias will have trouble sustaining that bias in the coming session, without the support of a like shift in the next session’s MC Value.

SENTIMENT BIAS: NEGATIVE – R=UT1

 The R LEVEL equal to the UT1 [UPSIDE TARGET #1] creates a resistance band with the UP [UPSIDE PIVOT] as upper extreme of this technical state. All trading below this price band will have a negative sentiment bias. Typically in this behavioral framework the market is probing higher with this zone acting as the exhaustive high point of the sideways pattern. Use caution.  Difficult trading conditions are expected. A rise above the R Level is a positive signal with the potential to produce a transition higher.

Optimal Strategy = BUY DP REVERSAL; SELL R FADE; SELL UP REVERSAL

Hedge Strategy = BUY R BREAKOUT: SELL DIR CR BREAKOUT

OPTIONS ANALYSIS 

Neutral Digestion markets offer an opportunity to cautiously sell some option premium.  Caution is warranted as the Neutral Digestion state can be a precursor to a breakout as the coiling action will build power.  There is a negative sentiment bias but directional moves are not expected to be sustained.  A breakout to the downside will bring higher volatiles.

SOYBEAN Futures - SET FOR SIDEWAYS

Technically the MKT is in a NEUTRAL DIGESTIVE position with a negative bias below 1283-0 down to the 1268-0 Inflection Pivot. This is the session boundaries if the digestive trade is going to play out. A held violation of this range will spark some interest, especially on a failure from 1268-0.


On the SELL side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. SELL BREAKOUT strategies should just "go" and not look back, so keep risk parameters tight. FADE strategies after a negative breakdown signal are good opportunities as well but expectation should be for the MKT to quickly move back under the failed support. If the trade just "hangs around" is more likely a signal that more digestive action is coming and a retest of resistance should be expected. Be more aggressive with FADE and REVERSAL strategies at or against the previous session high point targeting the opposing digestive support. Above the previous session high point entering after the 2nd or 3rd press into an area is recommended over stepping in front of the initial challenge.

On the BUY side BREAKOUT strategies 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 structure most of the day. If the MKT digests prior to making a positive move it is more likely a short squeeze to FADE. BUY FADE strategies 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 recommended off the session initial major support only, as the MKT is vulnerable to a negative trend shift. The probability is to the downside today so don't get stubborn buying breaks.

Note: The MKT is in neutral so "sloppy" conditions with "false signals" should be anticipated. Have a plan for any squeeze. Don't get stubborn however if the MKT starts to hold structure and gets 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


* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv  .

To learn more about JS Services Strategy Based Trading approach please contact me at info@jsservices.com  . You can also visit http://www.jsservices.com/  and sign up for a Complimentary FREE Trial.

Canadian Dollar Futures - TRUTH OR DARE

Technically the MKT is in a NEUTRAL DIGESTIVE position with a negative bias. Opportunity exists on both sides of the MKT but the threat of a negative turn is real.

Key off the 9606 Inflection Pivot for an indication of the session tone. If the MKT is bad it will struggle to maintain a trade above here. If so a difficult sideways trade is expected with 9692 the expected digestive high point.


On the SELL side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. SELL BREAKOUT strategies below 9606 should just "go" and not look back, so keep risk parameters tight. FADE strategies after a negative breakdown signal are good opportunities as well against 9649 but expectation should be for the MKT to quickly move back under the failed support. If the trade just "hangs around" is more likely a signal that more digestive action is coming and a retest of resistance should be expected. Be more aggressive with FADE and REVERSAL strategies at 9692 or against the previous session high point targeting the opposing digestive support. Above the previous session high point entering after the 2nd or 3rd press into an area is recommended over stepping in front of the initial challenge.

On the BUY side BREAKOUT strategies above 9692 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. If the MKT digests prior to making a positive move it is more likely a short squeeze to FADE. BUY FADE strategies off 9606 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 at 9606 are recommended off the session initial major support only, as the MKT is vulnerable to a negative trend shift. The probability is to the downside today so don't get stubborn buying breaks.

Note: The MKT is in neutral so "sloppy" conditions with "false signals" should be anticipated. Have a plan for any squeeze. Don't get stubborn however if the MKT starts to hold structure and gets 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


* ENTRY STRATEGY - 5min web video explaining FADE, BREAKOUT and REVERSAL strategies http://www.jsservices.com/education/sbt/CME_EntryStrategies5min.wmv .

To learn more about JS Services Strategy Based Trading approach please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.

NAT GAS Futures - CORRECTIVE SIGNAL

Technically the MKT is in a NEUTRAL DIGESTIVE position and has produced a negative signal. The MKT is in Neutral so if it does not follow through on its negative signal the potential for a whiplash rally is high.

Key off the 4.154 Inflection Pivot for an indication of the session tone. A held trade above here keeps the underlying tone positive.

On the SELL side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. SELL BREAKOUT strategies below 4.154 may need to be "worked" as the neutral position will produce some starts and stops. FADE strategies after a negative breakdown signal at 4.227 are good opportunities as well but expectation should be for the MKT to quickly move back under the failed support. If the trade just "hangs around" is more likely a signal that more digestive action is coming and a retest of resistance should be expected. Be more aggressive with FADE and REVERSAL strategies at 4.300 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 4.300 are aggressive and should be entered sooner [lower] than later [higher]. Expectations should be for the MKT to reversing yesterday's negative signal and holding strucutre after a positive signal. If the MKT digests prior to making a positive move it is more likely a short squeeze to FADE. BUY FADE strategies off 4.154 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 recommended off 4.154 only, as the MKT is vulnerable to a negative trend shift.

Note: The MKT has produced a negative signal in a neutral environment. This is teither the beging of a new trend move south or a press into the negative extreme which is about to snap back. Don't get tied into either opinion and let the MKT tell you what is.

JS

Join our "LIVE" TRADE ROOM and learn JS Services Strategy Based Trading approach using CLEARBOX automated strategies! For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.

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

Join our "LIVE" TRADE ROOM and learn JS Services Strategy Based Trading approach using CLEARBOX automated strategies! For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.

30YR US T-Bond - TRYING TO MAKE A DIFFERENCE

Technically the MKT is in a NEUTRAL DIGESTIVE position with a positive bias above the 116-07 Inflection Pivot. Opportunity exists on both sides of the MKT but buying weakness above here is the better opportunity.

On the SELL side BREAKOUT strategies below 116-07 or the 115-18 support pivot are aggressive and should be entered sooner [higher] than later [lower]. Expectations should be for the MKT to make its move early in the session and not look back, holding structure most of the day. If the MKT digests prior to making a negative move, it is more likely a squeeze on the longs to FADE. SELL FADE strategies against the 116-28 resistance pivot are aggressive as well and if they are going to work, should do so on the initial test of resistance. Repeated tests or "confirmation" are more likely to give way to a higher trade. SELL REVERSAL strategies at 116-28 are recommended off the session initial major resistance levels only as the MKT potential for positive trend shift. The probability is to the upside today so don't get stubborn selling strength.

On the BUY side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. BUY BREAKOUT strategies above the 116-28 resistance pivot should just "go" and not look back, so keep risk parameters tight. FADE strategies off the 116-07 level after positive breakout signals are good opportunities as well but expectation should be for the MKT to quickly move back above violated resistance. If the trade just "hangs around", it is likely a signal that more digestive action is coming and a retest of support should be expected. Be more aggressive with FADE and REVERSAL strategies at the 115-18 support pivot or above the previous session low point, targeting the opposing digestive resistance at 116-28. Below the previous session low point, entering after the 2nd or 3rd test of support is recommended over stepping in front.

Note: The MKT is in neutral so "sloppy" conditions with "false signals" should be anticipated. Have a plan for any squeeze. Don't get stubborn, however, if the MKT starts to hold structure and gets 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

Join our "LIVE" TRADE ROOM and learn JS Services Strategy Based Trading approach using CLEARBOX automated strategies! For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.

BUND - MIXED SIGNALS

The MKT is in Neutral but has produced a big negative signal. Stay nimble. If the signal does not follow through the potential for a whiplash rally is high.

Key of the 12282 Inflection Pivot for an indication of the session tone.

On the SELL side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. SELL BREAKOUT strategies below 12246 may need to be "worked" as the neutral position will produce some starts and stops. FADE strategies after a negative breakdown signal against the 12282 Directional are good opportunities as well but expectation should be for the MKT to quickly move back under the failed support. If the trade just "hangs around" is more likely a signal that more digestive action is coming and a retest of resistance should be expected. Be more aggressive with FADE and REVERSAL strategies at 12318 or against the previous session high point targeting the opposing digestive support at 12246. 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 off 12282 or above 12318 are aggressive but do have potential if yesterday's signal was false producing a nice squeeze rally. BUY FADE strategies at 12246 are aggressive as well 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 at 12246 and 12282 are recommended off the session initial major support only, as the MKT is vulnerable to a negative trend shift and any new weakness is confirmation to yesterday's signal.

Note: The MKT has produced a big negative signal in a neutral environment. This is either the beging of a new trend move south or a press into the negative extreme which is about to snap back. Don't get tied into either opinion and let the MKT tell you what is.

JS

Join our "LIVE" TRADE ROOM and learn JS Services Strategy Based Trading approach using CLEARBOX automated strategies! For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.

EuroSTOXX - NEUTRAL POSITIVE SHIFT

Technically the MKT is in a NEUTRAL DIGESTIVE position with a positive bias above 2856.0 Inflection Pivot. The MKT has produced a positive signal and if it is going to influence today's session the MKT will maintain a trade above this price point.

On the SELL side BREAKOUT strategies below 2856.0 are aggressive and but do have potential to sharply turn sentiment back to the opposing digestive extreme. Expectations should be for the MKT to make its move early in the session and not look back, holding structure most of the day. If the MKT digests prior to making a negative move, it is more likely a squeeze on the longs to FADE. SELL FADE strategies against 2890. are aggressive as well and if they are going to work, should do so on the initial test of resistance. Repeated tests or "confirmation" are more likely to give way to a higher trade. SELL REVERSAL strategies are recommended off the session initial major resistance levels only as the MKT potential for positive trend shift. The probability is to the upside today so don't get stubborn selling strength.

On the BUY side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. BUY BREAKOUT strategies above the 2890.0 resistance pivot should just "go" and not look back, so keep risk parameters tight. FADE strategies off the 2873.0 Directional after positive breakout signals are good opportunities as well but expectation should be for the MKT to quickly move back above violated resistance. If the trade just "hangs around", it is likely a signal that more digestive action is coming and a retest of support should be expected. Be more aggressive with FADE and REVERSAL strategies at the 2856.0 Inflection Pivot, targeting the opposing digestive resistance. Below this price point wait for 2nd or 3rd test before entering off support rather than stepping in front.

Note: The MKT is in neutral so "sloppy" conditions with "false signals" should be anticipated. Have a plan for any squeeze. Don't get stubborn, however, if the MKT starts to hold structure and gets 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

Join our "LIVE" TRADE ROOM and watch JS Services CLEARBOX automated strategies trade these recommendations! For more information please contact me at info@jsservices.com. You can also visit http://www.jsservices.com/ and sign up for a Complimentary FREE Trial.

SP500 Futures Index - Set to Swing

The JUN'10 SP500 Futures contract is in a NEUTRAL DIGESTIVE technical state after an unsuccessful press to new move highs. This MKT is set to churn with 1176-1146.75 the current digestive extremes.

1146.75 is the session Inflection Pivot and the low point for any big sideways trade.

On the SELL side avoid BREAKOUT strategies below 1157.50 but rather FADE a positive reaction after a negative breakdown signal against 1166.75. REVERSAL strategies at 1176 and 1185.25 are recommended over FADE strategies as "sloppy" trading conditions are expected. Any FADE trades should get confirmation or an exhaustion or turning point signal before executing. Position management adjustments should be anticipated for all sales as sideways trading conditions can quickly erase profits.

On the BUY side BREAKOUT strategies above 1166.75 and 1176 are valid but should expect a laborious trade. Work any position, selling into emotional surges and re-entering on any sharp pullbacks. Expect a choppy trade and be aggressive on minimizing profit giveback. FADE and REVERSAL strategies are recommended off 1157.50 and the 1153.25-1146.75 support band. The probability is to the upside today but is not a day to press it.

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. Be more aggressive accepting BUY signals off 1153.25 and down to 1146.75 as this is the base for any new advance.

JS

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SP500 Index -Corrective Technical Signal

The technical structure of the Mar'10 S&P500 Index futures contract has downshifted into a NEUTRAL CORRECTIVE. Expectations are for more difficult trading action in front of the roll with the 1127 Inflection Pivot the low point for any setback.

On the SELL side avoid FADE strategies against the 1151.75 resistance pivot until after the previous session low point or 1138.25 level has been broken to confirm a negative shift in momentum. REVERSAL strategies should be avoided as any positive signal is more likely an indication that the underlying trend is going to resume. SELL BREAKOUT strategies below 1138.25 can be profitable but they are aggressive and should look to take profits and potentially REVERSE long at the 1131.50 and 1127 support targets. The trade is counter trend so avoid any negative commitments.

On the BUY side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the positive momentum is going to resume. REVERSAL strategies are recommended over a FADE strategies at 1138.25 and 1131.50, which should have at least 1 if not 2 challenges to the support integrity before executing a long off it. The best buy FADE will be at the 1127 Inflection Pivot today. BREAKOUT strategies above the 1151.75 resistance can risk a little more if current events and other MKTs of confluence confirm a positive posture. If not a better approach would be to FADE a negative "squeeze" reaction down to the 1145 Directional after a positive breakout signal as the neutral technical position can keep the trend sideways.

Note: The MKT has produced a big technical signal against the current trend. Be aware that the negative action may be a 1-day event with the positive trend quickly re-establishing itself. If the MKT is really going to turn it should remain hard pressed and provide little or no relief.

JS

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Japanes Yen - Vulnerable below 11113

The JUN'10 Japanese Yen contract spun its wheels after Wednesday's negative signal stabilizing into a NEUTRAL DIGESTIVE trade. Key off the 11113 Inflection Pivot today. Below here the currency will remain vulnerable to the offer.

On the SELL side BREAKOUT strategies below the 11005 support pivot are aggressive and should be entered sooner [higher] than later [lower]. Expectations should be for the MKT to make its move early in the session and not look back, holding structure most of the day. If the MKT digests prior to making a negative move, it is more likely a squeeze on the longs to FADE. SELL FADE strategies against 11077 are aggressive as well and if they are going to work, should do so on the initial test of resistance. Repeated tests or "confirmation" are more likely to give way to a higher trade up to the 11113 Inflection Pivot. SELL REVERSAL strategies are recommended off either resistance level.

On the BUY side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. BUY BREAKOUT strategies above the 11077 resistance pivot should just "go" and not look back, so keep risk parameters tight. 11113 is the roll short target. Only above here does sentiment shift positive. FADE strategies off the 11041 Directional after positive breakout signals are good opportunities as well but expectation should be for the MKT to quickly move back above violated resistance. If the trade just "hangs around", it is likely a signal that more digestive action is coming and a retest of support should be expected. Be more aggressive with FADE and REVERSAL strategies at or above the previous session low point or the 11005 support level, targeting 11077.

Note: The MKT is in neutral so "sloppy" conditions with "false signals" should be anticipated. Have a plan for any squeeze. Don't get stubborn, however, if the MKT starts to hold structure and gets 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

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.

STRATEGY BASED TRADING Review http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

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.