NEUTRAL TRANSITION
Technically the MKT is in a NEUTRAL TRANSITION and is flirting with a shift in sentiment. Opportunity exists on both sides with the potential for a decisive session.
On the SELL side FADE and REVERSAL strategies should be executed off the initial resistance inflection points only, as any positive showing has the potential to be the start of something bigger. Only after the MKT confirms a negative shift intra-day can these strategies get aggressive. BREAKOUT strategies may need to be "worked" as false starts and stops should be expected. Use aggressive position and risk management on the initial failure signal. If stopped out, back off and look to FADE positive push against resistance rather than continue to press it in the hole.
On the BUY side BREAKOUT strategies should just go if the MKT is going to transition higher. A sideways trade after a breakout signal is a sign of weakness foreshadowing a retest of support before a new move north. FADE and REVERSAL strategies are valid off the initial support levels as well as the previous session low. A break under the previous session low point is a negative signal that has the MKT vulnerable to a return to the offer. Under this scenario, avoid buy signals until the MKT is back higher on the day.
Note: The MKT is in transition through the neutral zone. False starts and stops should be expected and position management adjustment anticipated, as quick momentum turns are the norm in this technical environment.
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*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
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