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.

NATURAL GAS

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

Wrap Up
- NATURAL GAS has produced a positive signal with a MC value of +7 and the R Level at the minor level below the DT1.  This setup has extremely bullish implications and traders should be looking to BUY at all major inflection points above the R.  Although we weren't given a substantial rally, the opportunity for profits was still presented to us during the trading day.  Just after 7 A.M. a BUY DIR FADE strategy could have been executed.  The trade held structure, making higher lows and higher highs throughout the advance, and ultimately achieved the UP around 10:30 A.M. 

10YR T-NOTES

Today's MARKET STATE for 10YR T-NOTES: **NEUTRAL NEGATIVE SHIFT**

-Technically the MKT has produced a big 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.  UP REVERSAL strategies should be avoided as any positive signal is more likely an indication that the underlying trend is going to resume.  DP SELL BREAKOUT strategies can be profitable but they are aggressive and should look to take profits and potentially REVERSE long at support targets.

- 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.  UP BREAKOUT strategies can risk a little more if current events confirm positive posture.  If not, a better approach would be to FADE a negative “squeeze” reaction after a positive breakout signal at the DIR as the neutral technical position can keep the trend sideways.

Today's PRICE MAP Performance for TY

Wrap Up
- Today the 10YR T-NOTES performed to market expectations.  The market produced a negative signal with a MC Value of -2 in an underlying POSITIVE trend.  The R Level at the DIR defines the level above which traders should be looking for the positive trend to resume.  The market respected the R Level just before 3 A.M. and rallied up to the minor level within the Critical Range.  The market then gave us the negative "squeeze" that our Market State told us to look for and gave the trader a perfect opportunity to execute a BUY DIR FADE strategy at the R Level around 6 A.M.  From here, price action continued higher, crossing the UP, and almost achieving the UT1.

MINI NASDAQ 100

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

- The MKT has produced a positive signal but has yet to confirm the signal and remains in neutral. On the SELL side REVERSAL strategies can be executed at the UP or near the previous session high point. Avoid this strategy on higher levels as any new strength has the potential to be the beginning of a move. If the integrity of the previous session high remains intact, UP FADE strategies can be accepted. Use a BREAKOUT strategy as a signal for a DIR FADE. Only take this trade if the previous session high point remains intact.

- On the BUY side be more aggressive after the previous session high has been taken out.  UP BREAKOUT strategies should just "go", so keep risk parameters tight. FADE into any negative reaction off an unsuccessful upside BREAKOUT against the DIR. DP FADE strategies are recommended early in the session or near the end.

Today's PRICE MAP Performance for ND

Wrap Up
-Today's Market State for the MINI NASDAQ 100 is a very unique one.  This Market State is used when the signature state is NEUTRAL; however, there is a higher probability for today to be the beginning of a new move.  Since the market had produced a POSITIVE signal, and the R Level at the DIR, the trader should be bullish as long as the R Level holds support.  In the event that the price moves below the R Level, this negates the positive signal, and suggests that the rest of the trading day is going to be sideways.  With the R Level still in tact, we were offered our first opportunity to buy the market around 8:30 A.M. with a "Buy UP Breakout" strategy.  Our expectation is that once the UP is breached, the market should just "go"...and "go" it did!  The market continued to rise steadily, digested at the UT1 from 11:30 - 12, and then continued higher, ultimately achieving the UT2.  This level is 2 major Price Map levels away from our entry position at the UP and represents the target at which profits should be realized.

CANADIAN DOLLAR

Today's MARKET STATE for CANADIAN DOLLAR: **NEUTRAL POSITIVE SHIFT**

- Technically the MKT has produced a positive signal against a negative trend. On the SELL side accept BREAKOUT, FADE and REVERSAL strategies off major inflection points with the expectation that the negative momentum is going to resume. UP REVERSAL strategies are recommended over a FADE, which should have at least 1 if not 2 challenges to its integrity before executing a short sale against it. A better approach to a straight DP BREAKOUT strategy is to FADE a positive "squeeze" reaction after a negative breakdown signal against the DIR.

- On the BUY side avoid DIR and DP FADE strategies until after the previous session high point or major resistance has been taken out to confirm a break in momentum. Until then, a better opportunity will be a DP REVERSAL strategy. UP BUY BREAKOUT strategies can be profitable but they are aggressive and should look to take profits and potentially REVERSE short at resistance targets.

Today's PRICE MAP Performance for CD

 

Wrap Up
-With an MC Value of +1 and the R Level at the DIR, the CANADIAN DOLLAR has generated a positive signal which remains intact above the R Level.  The Market surged a little after 5 A.M., moving through the UP offering the trader a "Buy UP Breakout" trade. Although this is an aggressive strategy, it was in line with our expectations and in agreement with the Sentiment Bias.  Price action continued through the UT1 and eventually made it up to the UT2, where profits must be realized.  From here, our Market State suggests that profits should be taken, and potentially REVERSE short at resistance targets.  Had the trader followed the expectations for this Market State, he or she could have REVERSED short, and made a profit, as the market fell off back to the UT1 around 10 A.M.

DOW JONES FUTURES INDEX

Today's MARKET STATE for DOW JONES FUTURES INDEX: **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 DF

 

Wrap Up
-Today, the DOW JONES FUTURES INDEX was in a "Neutral Digestion" state and our expectation is for a sideways trading day.  With an MC Value of -1 and the R Level at the UT1, there is a negative bias to today's price map.  The DF had an early rally that broke out of the Critical Range around 6:30 A.M.  This move signaled to the trader that a new digestive range was being established.  Since the R Level was placed at the UT1, the analyst is telling the trader that the market has the potential to breakout of the critical range, but the probability favors a failure to surpass the UT1.  As it played out, the market did indeed fail from the R Level, and presented the trader with the highest probability trade of the day, a "Sell R Fade".  From here the market began to retrace its progress, giving the trader an opportunity to realize profits at the UP around 10 A.M.  The market again failed from the R Level around 2 P.M. which would have provided the trader with another opportunity to Sell the R Level for a profitable trade.