E-MINI RUSSELL 2000

Today's MARKET STATE for E-MINI RUSSELL 2000: **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 TF

Wrap Up
- The E-MINI RUSSELL 2000 Market Strategy for today's session worked perfectly.  In a NEUTRAL DIGESTION TRANSITION Market State, the market has the potential for a positive move today.  Our market commentary tells us that on the BUY side, we should wait for a negative reaction after a positive signal to FADE the DIR.  In the early session around 2:30 A.M. price action breaks out of the Critical Range by penetrating the UP.  Price continues higher and then eventually there is a sharp sell off around 8:30 A.M.  This is the negative reaction after the positive breakout signal that we are looking for to FADE the DIR.  Since the analyst has put the R Level at the DIR, this reinforces the idea that the DIR should serve as major Support and traders should look to execute a BUY DIR FADE from this level.  Price action came all the way down to the DIR, respected the level perfectly, and then rebounded back to the Minor level at 807.90.  After digesting for a bit, the market began another advance that took price through the UP.  Due to the Neutral Market Structure, position management should be tight.  After the rally failed to make a new intraday high around 10:30 A.M., the trader should have realized this as a sign of weakness, and closed their long position to minimize profit giveback.

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E-MINI RUSSELL 2000

Today's MARKET STATE for E-MINI RUSSELL 2000: **BULL TREND CORRECTION**
- The MKT has produced a big negative signal against an underlying positive trend. On the SELL side accept UP FADE signals on the 1st press into the area only. REVERSAL strategies should only be done off the UP or the previous session high point and will immediately work if they are going to. Keep position and risk management tight on these trades. SELL DIR and DP BREAKOUT strategies are aggressive but do have potential to be the start of a larger corrective turn. Keep risk management tight.
- On the BUY side accept REVERSAL signals off all major inflection levels, expecting the underlying positive momentum to resume. DP 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 DIR and UP BREAKOUT strategies as any positive shift in momentum has the potential to be the start of the next leg higher. DIR FADE strategies after the UP Breakout should use greater leverage.

Today's PRICE MAP Performance for TF

 

Wrap Up
- The E-MINI RUSSELL 2000 has produced a shift in sentiment and has presented traders with a negative signal in an underlying bull market.  The R Level is at the previous sessions high and our market commentary says that if the UP is to come into play, it should be used to SELL a REVERSAL off the previous session highs.  The market rallied up through the UP, but failed to confirm the move by stopping short of the minor level at 817.20.  The market then sold off below the R had a brief pop above the R which created a LOWER high.  From here we saw an exhaustive sell off from the R.  Price action was setup perfectly for a SELL R REVERSAL strategy off the previous session highs as the price traded above the highs, reversed back below the R, and then created negative structure before hosting an exhaustive sell off.  The market plummeted from 6:30 A.M. until around 8:00, where it had a brief bounce off the DIR before continuing lower.  The market eventually found support at the DP a little after 9:00 A.M., presenting a perfect opportunity for traders to cover their short position and realize a nice profit.

EURO-BOBL

Today's MARKET STATE for EURO-BOBL: **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 BOBL

 

Wrap Up
- Today in the EURO-BOBL futures market, traders had a wonderful opportunity for some serious profits as the market performed to our expectations.  In a NEUTRAL DIGESTION market state with an MC Value of -2, the market has produced a slight negative bias in an otherwise neutral market.  However, the analyst has put the R Level (Sentiment Bias) at the DP telling the trader that any reaction down to this level, should be bought as the analyst expects the Critical Range to hold structure, and the price to reverse course, and rally from the R Level.  Our market commentary warns of a "sloppy" trading environment, and advises that traders get confirmation before executing a BUY DP FADE strategy.  The market churned around the DIR during the early session, eventually sold off to the DP, and respected this level perfectly.  The market bounced off this level and made another attempt at the DP at 4:00 A.M. This attempt failed to break below 126.80, making a HIGHER LOW and giving us confirmation for our BUY DP FADE trade.  The market immediately rallied up to the DIR, digested for a bit, and then continued higher.  Around 7:45 A.M., the market spiked and took prices all the way through the UP and eventually made it up to the UT1, where profits should have been realized, if they hadn't been earlier.  Today's performance in the EURO-BOBL serves as another illustration of the trading power of JS Services Price Map.

EURO CURRENCY

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

- Technically the MKT is in neutral but has produced a positive signal. On the SELL side DIR and DP BREAKOUT strategies are aggressive. If the MKT digests prior to making a negative move, it is more likely a squeeze on the longs to FADE.  UP SELL FADE strategies are aggressive as well and if they are going to work, should do so on the initial test of resistance. SELL REVERSAL strategies are recommended off the UP only. 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. UP BUY BREAKOUT strategies should just "go" and not look back, so keep risk parameters tight. DIR FADE strategies after a positive breakout signal 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.

Today's PRICE MAP Performance for EU

Wrap Up
- The EURO CURRENCY had produced a positive signal for today's trading session and the probability is to the upside.  Our market commentary tells us that if a BUY UP BREAKOUT trade presents itself, our expectation is for it to just "go" and not look back.  After respecting the UP around 1:45 A.M. the market makes a second attempt at the UP, this time trading through it and giving us our BUY UP BREAKOUT strategy.  Our expectation is for this trade to just "go" and indeed it did.  The market rallied sharply up to the minor level, digested for a bit between the UT1 and minor level, and then eventually continued to move higher.  The "second wind" rally took the market all the way up to our price target, the UT2, and gave traders the opportunity to take profits on their long positions.

EURO STOXX 50

Today's MARKET STATE for EURO STOXX 50: **NEUTRAL DIGESTION**

- The MKT is in a sideways digestive position with a slight positive bias.
- On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal. UP and UT1 REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any UP FADE trades should get confirmation first.
- On the BUY side UP BREAKOUT strategies 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 give-back. DP and DT1 FADE and REVERSAL strategies are recommended.

Today's PRICE MAP Performance for DSX

Wrap Up
- The market has produced a positive signal in a NEUTRAL market state and the probability for the day is to the upside.  By placing the R Level at the minor level below the DP, the analyst is "expanding" the Critical Range by saying that any reaction can go as far down as the R Level, before it is expected to rally.  Our market commentary tells us that a BUY DP and DT1 FADE and REVERSAL strategies are recommended today, and around 9:30 A.M. we are presented an opportunity to execute a BUY R REVERSAL strategy.  Since the R Level is at a minor level between the DP and DT1, this strategy is in agreement with out expectation for the day, and also illustrates the importance of the R Level.  After selling off throughout the early session, EURO STOXX 50 found support at the R Level, and quickly began to rally.  Since the market is in a NEUTRAL DIGESTION state, we must respect the sideways tone of the market, and be aggressive with our position management.  Although the DIR would have been an ambitious target to attain, the market stabilized at the minor level between the DP and DIR presenting the trader with a good time to exit the position and realize a solid profit.

AUSTRALIAN DOLLAR

Today's MARKET STATE for AUSTRALIAN DOLLAR: **NEUTRAL DIGESTION**

- The MKT is in a sideways digestive position with a slight positive bias.
- On the SELL side avoid DP BREAKOUT strategies but rather FADE a positive reaction against the DIR after a negative breakdown signal. UP and UT1 REVERSAL strategies are recommended over FADE strategies as "sloppy" trading conditions are expected. Any UP FADE trades should get confirmation first.
- On the BUY side UP BREAKOUT strategies 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 give-back. DP and DT1 FADE and REVERSAL strategies are recommended.

Today's PRICE MAP Performance for DA

Wrap Up
- With an MC Value of +1 and the R Level at the DP, there is a slight positive bias to the trading session today in the DA.  However, the positive bias was quickly negated by the penetration of the R Level in the overnight session.  The initial SELL DP BREAKOUT signal should be avoided as the market could have been producing a false breakout.  With that being said, the market rallied back to the R Level, where it held resistance.  The markets inability to trade above the R Level serves as confirmation of the shift in sentiment, and the SELL DP BREAKOUT strategy could be executed after the market failed from the R Level around 1:30 A.M.  Failure from this important Price Map level sets the tone for the remainder of the trading session. The market sold off quickly to the DT1, churned around that level for a bit, then continued lower around 8:30 A.M.  Although this trade required patience on the part of the trader, the market eventually traded down to our price target, DT2, and proved to be a profitable trade.