The Dec'09 SP500 Index posted a new move high lower close to put the contract back in a NEUTRAL CORRECTION technical posture. The MKT is in a bit of a vacuum pocket and is primed for some volatility. 1089 is the beginning of a support band that extends down to the 1084.50 Inflection Pivot. This is the low point for any lower squeeze if the underlying positive momentum is going to resume. Accept buy signals in this zone. A held failure from 1084.50 is a fresh negative signal which extends the pressure down to 1071. Here again buying is expected. Only under this support do I see the potential for a release with 1044 and 1026 targeted. 990 is the current extreme.
Use the 1098 Directional level as a sentiment guide for the session. A held trade above here has the Index playing cat and mouse up to 1107. If the CORRECTIVE trade is going to resume the MKT will reject here. If not the buyers will try to ramp things back up targeting new move highs up to 1120.50. 1132 and 1153.25 are the extended targets.
JS
Price Map performance for Wednesday's post for Thursday DEC 3 2009.
Note how the MKT was not able to sustain a trade above the 1112.25 Inflection Pivot which ultimately provided the signal to the negative move. This is Strategy Based Trading at work. Our expectations are that the MKT should maintain a trade above the Inflection Pivot if the BULL TREND was going to resume. If not expectations are that the MKT will fall back into a DIGESTIVE trade lower. The MKT could not maintain a trade above 1112.25 and broke down as expected. Align your expectations with the current technical posture and use JS Services Inflection Pivots to capture opportunity.
Dec'09 SP500 Index Dec 3, 2009
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The Index started teh week in a negative corrective signal which remained in force below the 1095.50 Inflection Pivot. During Sunday evening's session the level was tested and then violated early Monday. The violation negated the negative signal and confirmed a resumption of the underlying positive trend providing a nice buy opportunity. This is a perfect example of a REVERSAL opportunity in the BULL TREND CORRECTION technical signal.
The DOW provided a similar opportunuty breaking out above it's Inflection Pivot in the early Monday hours. This is why I like this signal state so much. It is dynamic and provides a great opportunity to get back on the underlying trend and favorable prices. Here even coming in at the regular session the violation of the 10412 JS Services initial target level provided a nice pop up to the 2nd target.
The FTSE100 was the best opportunity as its REVERSAL buy signal happened during the regular session and was combined with an Upside Pivot [UP] breakout signal attaining the 2nd Upside Target [UT2] in the session.