AUSTRALIAN DOLLAR

Today's MARKET STATE for AUSTRALIAN DOLLAR: **NEUTRAL POSITIVE EXTREME**

- The MKT is pressing the extreme but remains in a firm posture. On the SELL side REVERSAL strategies off the UP and UT1 will work best. If the integrity of the previous session low remains intact, avoid FADE strategies as expectation is for a higher trade. BREAKOUT strategies are a lower probability and should just "go". Risk little and have a resting defined target.
- On the BUY side FADE and REVERSAL strategies are recommended off the DP and DT1. As long as the MKT continues to hold positive structure, these strategies should be aggressively taken. BREAKOUT strategies should only have 1 pullback after a resistance breach, bottoming out above the DIR if they are going to follow through in the session. Any more and the market will be vulnerable to a neutral shift.

Today's PRICE MAP Performance for DA

 

Wrap Up
Today in the AUSTRALIAN DOLLAR market, we had an MC shift of 3 which gave us an MC Value of +3 today.  This drastic move resulted in a NEUTRAL POSITIVE EXTREME Market State.  With the R Level below the DP, our expectation is for a continuation of the positive momentum, and we want to accept BUY signals above the R.  Our market commentary tells us that BUY DP FADE strategies are recommended.  Just after 10 A.M. price action touches the DP giving traders an opportunity to execute the BUY DP FADE strategy.  Since we are in a NEUTRAL market state, we should use tighter position management, and profits should be taken at the DIR just after 1 P.M.

S&P 500

Today's MARKET STATE for S&P 500: **BEAR TREND DIGESTION**
 

-Technically the MKT is leaning lower but has yet to commit to a new negative move.  On the SELL side BREAKOUT, FADE and REVERSAL strategies are valid with the expectation that the underlying negative momentum is going to reassert itself.  Work any UP FADE or REVERSAL strategies within the digestive range, covering any position near the DP.  DIR and DP BREAKOUT strategies are valid, however, they may be choppy and more laborious.  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 against the DIR.  DP REVERSAL strategies are recommended over FADE strategies as “sloppy” trading conditions are expected.

Today's PRICE MAP Performance for S&P 500

Wrap Up
Today in the S&P 500 market, we had a MC Value of -5 and a BEAR TREND DIGESTION Market State.  This is a unique state because we remain in an underlying bear trend; however, we could be in for more of a digestive trade for the session.  Due to the early close of the S&P 500, we published our levels early so that traders could take advantage of the overnight session.  Our market commentary tells us that if we are going to look to BUY this market, that DP REVERSALs are recommended over FADEs as a sloppy trading environment is anticipated.  Just after 10:30 last night, we have a breakdown from the DP, and a quick correction back into the Critical Range, allowing us to execute a BUY DP REVERSAL.  The market continued making higher move highs and higher move lows, confirming that we were on the correct side of the market.  The trade eventually made it all the way up to our Upside Pivot (UP) just before the early close this morning.

EURUSD FOREX

Today's MARKET STATE for EURUSD FOREX: **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 EURUSD

Wrap Up
Today in the EURUSD FOREX market, we had an MC Value of +3 in a NEUTRAL DIGESTION environment.  Our market commentary tells us that we can accept BUY DP FADE and REVERSAL strategies as our expectation is for price to stay within the Critical Range.  Around 5:30 AM the market makes a push through the DP and quickly corrects itself.  After the market made another attempt at the DP and FAILED to put in a lower at 6:45 we are given an opportunity to BUY a DP REVERSAL as the market has told us that it is respecting the Support level at the DP.  In a sideways market, we should keep tighter position management, and profits on this trade should have been taken at the DIR.

S&P 500

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

- 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 eve 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 success than a DP FADE.

Today's PRICE MAP Performance for SP

Wrap Up
Today the market performed to expectations and gave traders the opportunity for major profits.  In a BEAR TREND environment, our market commentary tells us that we should accept all SELL signals at major inflection points.  With the R Level at the UP, we know that a SELL strategy at the R presents us with our highest risk/reward trade.  At 8 AM the market gave us a "head fake" about the R Level, and then immediately corrected itself.  This was our opportunity to execute a SELL UP REVERSAL strategy with the DP as out expected target.  As it played out, the market sold off sharp, stabalized at the DIR around 10 AM and then proceeded down to our downside target at the DP.

NATURAL GAS

Today's MARKET STATE for NATURAL GAS: **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 positions, 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 NG

Wrap Up
Today we had a big day in the NATURAL GAS futures market.  Our market commentary tells us to avoid a SELL DP BREAKOUT but rather FADE a positive reaction at the DIR.  With the R Level at the DIR, this strategy was in perfect alignment with our expectation for today.  As it played out, we got the breakdown at the DP around 5 A.M. and then a positive reaction up to our R Level at the DIR.  This was the highest probability trading opportunity and proved to be a profitable one.  By executing a SELL FADE from the DIR, our traders were able to capitalize on the corrective rally and realize profits either at the DP or the DT1.

GOLD

Today's MARKET STATE for GOLD: **BEAR TREND**

- Technically the MKT is in a BEAR TREND and has produced a negative signal.
- On the SELL side accept all BREAKOUT, FADE and REVERSAL signals. If the MKT produces a DP BREAKOUT signal early in the session, it should just "go" and not look back. Beware of any break in early negative structure, as a corrective rally up to resistance is a likely scenario.  Anticipate a price "zone" around a major resistance point to FADE. Follow any corrective rise with a REVERSAL strategy.
- On the BUY side REVERSAL strategies can be executed off of major support levels but preferably after an emotional sell off early in the session. Avoid DP FADE strategies even with confirmation, as this is more likely a plateau for a BREAKOUT SELL. UP BREAKOUT strategies are not recommended but do have a better chance of succeeding than a DP FADE.

Today's PRICE MAP Performance for GOLD

Wrap Up
Today in the GOLD futures market, we had an MC Value of -4 indicating a BEAR TREND market state.  Our expectation is for the continuation of the bear trend and a new move lower.  We had an early breakout from the DP which our market commentary tells us should just "go".  Indeed this trade did just "go" and never looked back as it built negative structure and wasted no time in selling off to the  UT1.  By using the MC Value to define the technical state of the market, our traders were able to capitalize on the breakout from the Critical Range and get short Gold on the breakout from the DP.

EURUSD FOREX

Today's MARKET STATE for EURUSD FOREX: **BULL TREND**

- Technically the MKT is in a positive posture and as long as it continues to hold structure, further gains should be expected.  If 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 EURUSD

Wrap Up
Today in the EURUSD FOREX market we had a MC Value of +4 and a BULL TREND market state.  The analyst has placed the R Level at the UP which, in essence, is telling the market, "If today is going to be a bull trend market, prove it!"  The market traded up to the R Level at 6 A.M. giving traders a chance to execute a SELL R FADE strategy.  The underlying bull trend of the market must be respected, and traders should have used tight position management.  Taking profits just after 8 A.M., we had another go at the UP around 9:30.  The R Level again proved to be a valid level of resistance, and allowed traders to get short from the R for a second time, realizing profits at the DIR just before 1 P.M.