NASDAQ 100

Today's MARKET STATE for NASDAQ 100: **BULL TREND DIGESTION**

- Technically the MKT is positive, however today it is on the fence as to its immediate direction with opportunity on both sides of the MKT.
- On the SELL side accept FADE and REVERSAL signals at the UP only. The underlying momentum is up, so keep position management and profit targets aggressive on any counter trend trades. Avoid DP BREAKOUT strategies as follow through in either direction is not expected. A DIR FADE strategy after a downside breakout is an opportunity but look to take profits at the DP.
- On the BUY side accept FADE and REVERSAL strategies off the DP and DT1 with the expectation that any test may need to build a base before it can mount a sustained positive push. UP BREAKOUT strategies are valid as well as any "pullback" opportunity following a positive breakout signal for a BUY DIR FADE strategy.
Today's PRICE MAP Performance for ND

Wrap Up
- A good day for profits in the NASDAQ 100 today as the market performed to expectations.  In a BULL TREND DIGESTION Market State with the R Level just below the DP, our expectation is that the BULL TREND is still in play as long as price respects this level.  As stated in our market commentary (STRATEGY), we are looking to BUY FADE and REVERSAL strategies off of the DP and DT1.  As our R Level is between these two levels, a BUY R FADE strategy is the highest risk-reward trade for the day.  After respecting the R Level before 2:30 A.M. the market began to sell off just after 8:30.  The R Level held support at 9 A.M. and gave traders an opportunity to execute the BUY R FADE trade we were looking for.  After encountering support at the R, the market rallied through the DP and up to around 2853.00, just below the DIR (our target).  If you hadn't cashed in on your trade at 10 A.M., the market eventually pushed through the DIR around 2:30 P.M. without ever trading back below the DP.

EURO-BOBL

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

- Technically the MKT is vulnerable to the offer. On the SELL side accept all BREAKOUT, FADE and REVERSAL signals. The MKT is on edge and any negative signal, especially below the previous session high, is an opportunity. Anticipate a price "zone" around a major resistance point to FADE. Have a plan and be ready. If your stop gets hit and the MKT does not immediately follow through, consider re-entering, even doubling up if there is structure to define low risk.
- On the BUY side REVERSAL strategies can be executed off of major support levels but preferably after an emotional sell off. This is an aggressive strategy and any profits should be realized at the previous support failure points. Avoid DP FADE BUYS even with confirmation, as this is more likely a plateau for a BREAKOUT SELL strategy. UP BREAKOUT strategies are not recommended but do have a better chance of succeeding than a DP FADE.

Today's PRICE MAP Performance for BOBL

 

Wrap Up
- Today was a unique day in the EURO-BOBL Futures market.  With an MC Value of -5, JS Services proprietary technical indicator is indicating that the market is in a BEAR TREND.  However, there was evidence in the RSI that made a case for a corrective rally so by placing the R Level at the DIR, the analyst is saying if the BEAR TREND is going to continue, it should just go.  Just after midnight the market advanced above the minor level at 124.80.  It then sold off sharply, only to encounter SUPPORT at the R Level.  This successful test of the R Level should have signaled traders to get long the market from the R Level with tight position management, as the underlying BEAR TREND must be respected.  As it played out, the market rallied throughout the day, had a brief pullback which found support at the UP around 4:30 A.M. and then continues up to the UT1, where profits should have been realized.  Today served as another example of the importance of the R Level when trading with JS Services Strategy Based Trading Approach.

DJI FUTURES INDEX

Today's MARKET STATE for DJI FUTURE INDEX: **BULL TREND**

- The MKT has a firm tone and as long as the integrity of the previous session low remains intact, look for excuses to get long. On the SELL side UP FADE strategies are valid but profit targets and risk management should be tight.  REVERSAL strategies should be applied only at the UP and +c after an exhaustive signal. Use DP BREAKOUT strategies as a signal to FADE a positive reaction against the DIR. Only until the MKT breaks the positive structure are sell signals an opportunity.
- On the BUY side BREAKOUT, FADE and REVERSAL are recommended as the MKT is bid and all buy signals are valid opportunity. If stopped out at or near the low tic of a reaction and the MKT is not following through to the downside, look to re-enter using the recent squeeze low as a stop. If the MKT breaks structure, de-leverage and be more selective as the likelihood of a sideways trade is high.
Today's PRICE MAP Performance for YM

Wrap Up
- In a relatively calm day for the markets today, the DJI FUTURES INDEX respected the analyst placement of the R Level which could have translated to profits for you, as a trader.  The R Level is the "Breaking Point" for the positive sentiment.  After respecting the R around 3:30 the market makes another attempt to breakdown from this level around 5 A.M.  The market digests around this level, and then resumes the underlying positive trend.  This overnight pullback position us as traders to benefit and execute a BUY DP FADE around 5:30 A.M.  The market maintained positive structure throughout the day, making higher highs and higher lows.  The market broke through the DIR and eventually made it past our minor level at 13502 before running out of steam.  A good strategy would have been to place a stop at 13502 after this level had been penetrated, which would have minimized your profit giveback on the trade.

JS Services Strategy Based Trading

Defining Market State, Structure, and Strategy is essential to becoming a successful trader.  See how JS Services can help you reach your maximum potential!

The following web video provides the foundation to our Strategy Based Trading approach.

http://progressive.powerstream.net/008/00102/edu/interactive/js_services/strategy_based_trading/index.html

If you would like to sign up for a FREE TRIAL of JS Services click here.

If you have any questions, feel free to email us at: info@jsservices.com.

Good Trading!

5-YEAR TREASURY NOTES

Today's MARKET STATE for 5-YEAR TREASURY NOTES: **BULL TREND**

- The MKT has a firm tone and as long as the integrity of the previous session low remains intact, look for excuses to get long. On the SELL side UP FADE strategies are valid but profit targets and risk management should be tight.  REVERSAL strategies should be applied only at the UP and +c after an exhaustive signal. Use DP BREAKOUT strategies as a signal to FADE a positive reaction against the DIR. Only until the MKT breaks the positive structure are sell signals an opportunity.
- On the BUY side BREAKOUT, FADE and REVERSAL are recommended as the MKT is bid and all buy signals are valid opportunity. If stopped out at or near the low tic of a reaction and the MKT is not following through to the downside, look to re-enter using the recent squeeze low as a stop. If the MKT breaks structure, de-leverage and be more selective as the likelihood of a sideways trade is high.
Today's PRICE MAP Performance for FV

Wrap Up
- Big day for traders in the 5-YEAR TREASURY NOTES market as our analyst correctly positioned our traders for the day.  With an MC Value of +4 and a BULL TREND Market State, our expectation is for a move higher.  However, by placing the R Level at the DIR, the analyst is saying "if this market is really in a bull trend, prove it!"  The market broke below the DIR in the early morning session, held support at the minor level 124'097 and then rallied back up to the DIR, where it failed twice to surpass this level.  This action negated the positive bias, and served as a prime opportunity to execute a SELL DIR BREAKOUT strategy.  Our profit target for this trade is the DT1, which was achieved right around 6 A.M.  Looking at our market commentary (STRATEGY), we are instructed to use a DP BREAKOUT as a signal to execute a SELL DIR FADE after a corrective rally.  Well, we had the DP BREAKOUT just before 5 A.M. and the corrective rally back up to the DIR stalled out around 124'112, giving us a PERFECT opportunity to SELL the DIR FADE after a DP BREAKOUT signal.  Wasting no time at all, the market sold off down to our profit target, the UT1, just after 9 A.M.  Today proved to be very profitable day for those trading with JS Services!

S&P 500 INDEX

Today's MARKET STATE for S&P 500 INDEX: **BULL TREND**

- The MKT has a firm tone and as long as the integrity of the previous session low remains intact, look for excuses to get long. On the SELL side UP FADE strategies are valid but profit targets and risk management should be tight.  REVERSAL strategies should be applied only at the UP and +c after an exhaustive signal. Use DP BREAKOUT strategies as a signal to FADE a positive reaction against the DIR. Only until the MKT breaks the positive structure are sell signals an opportunity.
- On the BUY side BREAKOUT, FADE and REVERSAL are recommended as the MKT is bid and all buy signals are valid opportunity. If stopped out at or near the low tic of a reaction and the MKT is not following through to the downside, look to re-enter using the recent squeeze low as a stop. If the MKT breaks structure, de-leverage and be more selective as the likelihood of a sideways trade is high.

Today's PRICE MAP Performance for SP

Wrap Up
- Today in the S&P 500 INDEX market, JS Services helped its traders position themselves on the correct side of the market to capture profits from the emotional rally that came from the Fed announcement.  An MC value of +7 and a BULL TREND Market State provided the framework for today's trading...BUY!  After a dull digestive period to start the day, the market began to rally just after 11:30 A.M.  From here, our market commentary suggests a BUY UP BREAKOUT trade with the expectation that the market will produce a move higher.  The market rallied violently up to the UT1, took a breath, and then continued up to our profit target, the UT2, just after 12:30.  Although we recommend realizing profits at the 2nd major price map level from the order entry point, a trader who'd held on to their position would have been rewarded handsomely, as the market traded all the way up to, and through, our 2nd minor level at 1455.00.  Trading with the JS Services Strategy Based Trading approach would have positioned you on the correct side of the market and led to SERIOUS profits today.

EURO-BOBL

Today's MARKET STATE for EURO-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
- With an MC Value of 0 and a NEUTRAL DIGESTION state, the market is "on the fence".  The BOBL opened the day below the R Level which indicating that traders should look for SELL signals below the R Level.  Just before midnight, the market met support at the DP.  From here, the market advanced throughout the early morning and tested the DIR just after 3:00 A.M.  This was the key moment in today's trading, as a failure from the R would validate that level and signal to the trader to short the market.  Price action respected the R Level perfectly and gave our traders an opportunity to execute a SELL DIR FADE strategy.  Ideally our profit target would be two major Price Map levels from our entry, giving us a target of the UT1; however, in a NEUTRAL market, expectations are for a choppy trade, and the DP would be a safer exit point.  As it played out, the market blew through the DP and did in fact make it all the way down to our ideal profit target at the UT1.  After finding support at the 124.84 level, the market rallied back up to the DP.  The market failed twice to surpass this level which signaled that the market was defining a new digestive range below the DP.