NATURAL GAS

Today's MARKET STATE for NG: **NEUTRAL NEGATIVE SHIFT**

- Technically the MKT has produced a negative signal against a positive trend. On the SELL side avoid UP and DIR FADE strategies until after the previous session low point or major support level has been broken to confirm a negative shift in momentum. Until then, a better opportunity will be a UP REVERSAL strategy. DP SELL BREAKOUT strategies can be profitable but they are aggressive and should look to take profits and potentially REVERSE long at support targets. The trade is corrective and the underlying positive tone must be respected.
- 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. DP REVERSAL strategies are recommended over FADE strategies, which should have at least 1, if not 2 challenges to the support integrity before executing a long off it. UP BREAKOUT strategies can risk a little more if current events confirm a positive posture. If not, a better approach would be to FADE the DIR after a UP breakout.

Today's PRICE MAP Performance for NG

Wrap Up
- Today in NATURAL GAS we are reminded of the power of the JS Services Price Map.  The NEUTRAL NEGATIVE SHIFT Market State tells us that the market has produced a negative signal in an underlying positive market state.  With the R Level at the DIR, the analyst is telling the trader that above this level, our expectation is for the positive trend to resume.  Around 9:30 AM the market took off, crossing the UP and presenting the trader with a BUY UP BREAKOUT strategy.  Our ideal profit target is two major Price Map levels away from our entry point, in this case, the UT2.  The price rallied violently up to this level, and respected it with astonishing accuracy.  By utilizing the power of the JS Services strategy-based trading approach, a trader would have been able to participate in this sharp rally, and realize a substantial profit from it.

EURO-BOBL

Today's MARKET STATE for BOBL: **NEUTRAL DIGESTION**

- Technically the MKT is "on the fence" with the potential to go in either direction or nowhere. Pick your points and have no expectations, as the likelihood of this MKT trading sideways is high.

- On the SELL side BREAKOUT, FADE and REVERSAL strategies are valid, however profit and position risk management should be aggressive and anticipated. The pivotal nature of the session does have the potential to be the starting point for a new move. However, the probability of any trend action is more likely to just be the MKT defining its new consolidation extreme.

- On the BUY side BREAKOUT, FADE and REVERSAL strategies are valid, however profit and position risk management should be aggressive and anticipated. The MKT is "on the fence" and does have the potential to be the beginning of a new trend move. The probability of a new trend move is low. However, any price trend action is more likely to just be the MKT defining its new consolidation extremes.

Today's PRICE MAP Performance for BOBL

Wrap Up
- Coming into today's trading session for the BOBL, our expectation is for a sideways trading day.  With the R Level at the DIR, the analyst is telling the trader that this is the "breaking point" for the market to make a move higher.  Since we are in a NEUTRAL DIGESTION Market State, the probability for any new trend action is low, and a breakout above the UP is more than likely just establishing a new consolidation extreme.  Sure enough, this is exactly what happened in the BOBL.  Around 4:30 AM we are given a BUY UP BREAKOUT opportunity above the R Level.  Since the Market State calls for tight position management, profits should be realized sooner, rather than later.  An opportunity for profit taking was given shortly before 5 AM, which would have realized a quick profit for an agile trader.  From here the market sold off, met resistance just below the UP and then rallied back up to the minor level.  It then retraced back to the UP, put in a HIGHER low, signalling positive structure was still in tact, and offered another opportunity to enter from the long side when it took off from the UP around 6:30.  Since our expectation is that a new consolidation extreme is being formed, rather than a new trend beginning, a valid profit target would be at the UT1.  Again, the market rallied to the UT1, giving the trader an opportunity to take profits shortly after 9 AM.  The break in positive structure (lower low) just after 10 AM served as a warning to the trader, and the price action moved sideways inside the newly formed digestive zone for the remainder of the session.

5-YR TREASURY NOTES

Today's MARKET STATE for 5-YR TREASURY NOTES: **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 FV

Wrap Up
- Today in the 5-YR TREASURY NOTES, we had a NEUTRAL DIGESTION Market State with the R Level just above the UP.  With a NEGATIVE bias and the R Level above the UP, the analyst is reiterating the fact that the highest probability trade today is on the SHORT side of the market.  A little before 8 AM, we are given the SELL DP BREAKOUT strategy that should have been executed.  Although the Market State warns that this could be a laborious trade, the price moved down to the DT1 with relative ease, and gave the trader an opportunity to realize profits toward the end of the trading session.

CRUDE OIL

Today's MARKET STATE for CRUDE OIL: **BEAR TREND CORRECTION**

- Technically the MKT has produced a counter trend signal and may be set for a short term shift in sentiment. On the SELL side REVERSAL strategies are recommended over FADES as the corrective trading environment is expected to produce some false positives on resistance violations as it probes higher.  DIR and DP BREAKOUT strategies should just "go" with expectations that the negative momentum is going to resume course. Anticipate profit management adjustments as sentiment can turn quickly.

- On the BUY side DIR and UP BREAKOUT should just "go" and hold structure. Risk less and go for more with the expectations of an emotional shift in sentiment supporting the technical positive signal. A break in the momentum of the positive signal and this strategy should be avoided as follow through in either direction is unlikely. Avoid DP REVERSAL strategies, as any break in structure is a sign that the Bear Trend is going to reestablish itself. FADE strategies off the DP should be entered sooner "higher" than later " lower" with expectations that the corrective rally is going to continue to run and keep pace.

Today's PRICE MAP Performance for CL

Wrap Up
- Today we have a BEAR TREND CORRECTION Market State, and an MC Value of +1.  With the R Level at the DP, the probability is for a counter trend rally above the R Level.  The market digested between the DIR and the minor level within the Critical Range until about 8:30 A.M. when we were given a BUY DIR FADE opportunity above the R Level.  This strategy is in line with our expectations for the day, as a counter trend signal has been produced and the placement of the R Level at the DP confirms the positive posture.  The market continued to gain throughout the morning, and achieved the UP a little before 10 A.M.  Since this is still a BEAR state, the trader must respect the underlying trend and implement tight position management as to minimize profit giveback.  The market digested around the UP for a few hours, and eventually met resistance at the minor level between the UP and UT1.

S&P 500 INDEX

Today's MARKET STATE for S&P 500 INDEX: **NEUTRAL NEGATIVE SHIFT**

- Technically the MKT is vulnerable to further "corrective" negative action, however today the indicators are balanced, putting the outlook "on the fence" with the potential of being a turning point session. On the SELL side accept BREAKOUT and FADE strategies off major inflection points with the expectation that any trade has the potential to be the start of the next negative move. If the market is indeed going to transition lower it will hold negative structure. Any break in momentum has the potential to be a positive turning point and an end to the "corrective" trade. DP BREAKOUT strategies can risk little more if current events and other MKTs of confluence confirm a negative posture.

- On the BUY side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that any trade has the potential to be the start of a positive shift. Use aggressive position management to reduce profit giveback as the neutral posture can produce some false signals. If the market is going to go, it will hold structure and not look back. If not, a choppy trend-less trading environment should be expected.

Today's PRICE MAP Performance for SP

 

Wrap Up
-The S&P 500 Index had a big move today that performed to our expectations for the NEUTRAL NEGATIVE SHIFT Market State.  In this state, if the market is going to advance, it is expected to hold structure and "not look back".  The price traded above the R Level, telling the trader that above this level, the probability is to the upside. We then saw a squeeze back down to the R Level around 7:00 A.M.  This generated a VERY important "TELL" as to what the rest of the day had in store for us.  The market HELD STRUCTURE at the R Level, confirming the positive move and validating a BUY R BREAKOUT strategy.  From here, the market made higher highs and higher lows throughout the trading session, maintaining POSITIVE STRUCTURE.  The market eventually leveled off, and if profits weren't realized around 11:00 A.M. when the market tested the UT2, the position must have been closed just after 2:30 P.M. when the market BROKE STRUCTURE by making a lower low.

MINI NASDAQ 100

Today's MARKET STATE for MINI NASDAQ 100: **NEUTRAL DIGESTION TRANSITION**

- Technically the MKT has the potential for a positive turn. Opportunity exists on both sides, however there is a better chance of an acceleration to the upside if the integrity of the previous session low remains intact. On the SELL side avoid UP and DIR FADE strategies until after the previous session low point has been broken. Until then, a better opportunity will be a UP REVERSAL strategy. The idea is that the transition trade is over and a negative shift back into a NEUTRAL DIGESTION is expected. DP BREAKOUT strategies can be profitable but they are aggressive. Risk less, go for more.

- On the BUY side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current positive transition will continue. Keep aggressive position management on UP BREAKOUT strategies as the MKT is still in the neutral zone and has yet to commit to a new trend. A more conservative strategy would be to wait for negative reactions after a positive signal to FADE the DIR.

Today's PRICE MAP Performance for ND

Wrap Up
- Today in the MINI NASDAQ 100 Futures market, we had a perfect example of the importance of the R Level within the JS Services Price Map.  The NEUTRAL DIGESTIVE TRANSITION Market State tells us that the market has the potential to turn positive, but with the R Level at the UP, the analyst is telling the trader that this is the "breaking point" for the day.  If the market remains below the R Level, the expectation is still negative, and the highest probability trade is at the R Level.  At 7:30 A.M. the market respected the R Level, and offer the trader a perfect opportunity to execute a SELL R FADE strategy with a profit target of two major Price Map levels away, which in this case is the DP.  The market sold off sharply, hit the DP, and gave the trader an opportunity to realize a handsome profit within minutes of entering the trade.  From here the market rallied back through the DP, through the DIR, and eventually tested the R Level at the UP for a second time.  This intraday "Double Top" formation presented the trader, for a second time, to short the market at the R Level.  In almost a mirror image of the first sell off, price declined sharply down to the DP where profits should have been realized.  The uncanny accuracy of the R Level today in the MINI NASDAQ 100 serves as a textbook example of how the Sentiment Bias (R Level) works within the JS Services Price Map.

EURO CURRENCY

Today's MARKET STATE for EURO CURRENCY: **NEUTRAL DIGESTION TRANSITION**

- MKT sentiment is leaning negative and will outweigh the buy side if the integrity of the previous session high remains intact.

- On the SELL side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current negative transition will continue. Keep aggressive position management on DP BREAKOUT strategies as the MKT is still in the neutral zone and has yet to commit to a new trend. A more conservative strategy would be to wait for positive reactions after a negative signal to FADE the DIR.

- On the BUY side avoid DP FADE strategies until after the previous session high point has been taken out. Until then, a better opportunity will be a DP REVERSAL strategy. The idea is that the transition trade is over and a positive shift back into a NEUTRAL DIGESTION is expected. UP BREAKOUT strategies can be profitable but they are aggressive. Risk less, go for more.

Today's PRICE MAP Performance for EU

Wrap Up
- The NEUTRAL DIGESTION TRANSITION Market State is a unique state in which the market has been digesting for some time, and today could mark the beginning of a new move.  With the R Level at the UP, the probability is to the downside, and the highest probability trade is a SELL UP FADE with the expectation that price will begin a new move lower.  Price action tested the UP around 2:30 A.M. giving the trader the SELL UP FADE opportunity that we were looking for.  Profits could have been taken at the DIR; however, given the Market State, there is a higher probability for a follow through on the move, and the DP should be our target.  This trade would have required patience; however, after testing the DIR twice previously in the session, the breakout of the DIR confirmed the direction of the market and offered the trader an opportunity to add leverage to his or her position.  The market quickly sold off the the DP presenting an opportune time to take profits.