Technically the MKT is in a BEAR TREND and is vulnerable to the offer. The MKT is on edge and all sell signals should be considered below major resistance inflection points.
On the SELL side accept all BREAKOUT, FADE and REVERSAL signals. The MKT is vulnerable to the offer 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 reentering, even doubling up if there is structure to define low risk. The expectation was that your stop was just part of a "stop sweep" and prices should quickly move back under the resistance inflection point. If the trade has good confluence with other like markets or a negative indicator signal, stay heavy. If not lighten back up to original position size. This strategy should only be used at a turning point level and within the acceptable stop zone. Accept only 2 losses and then consider reversing.
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. Expectations should be for an immediate "V" bottom turn with the MKT quickly moving away from the area or a gradual rise with higher lows after an exhaustive signal. Avoid FADE BUYS even with confirmation as this is more likely a plateau for a BREAKOUT SELL strategy. BUY BREAKOUT strategies are not recommended but do have a better chance of succeeding than a FADE.
Note: The MKT is under duress. Any positive action is going to have issues. Look for excuses to sell. If the MKT is heading lower it should be easy holding a short position. If not, it's likely we are in for a sideways trendless trade than a positive turn.
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