The MKT has produced a negative signal and should follow through today if valid. If not, a return to a sideways trade is likely. On the SELL side be more aggressive after the previous session low is taken out. DP BREAKOUT strategies should just "go", so don't risk much. FADE into any positive reaction off an unsuccessful downside BREAKOUT against the DIR. If the integrity of the previous session low remains intact, avoid UP REVERSAL strategies as any break in the negative momentum is a positive signal that the MKT is going to return to its neutral posture.
On the BUY side REVERSAL strategies can be executed off the DP. Avoid this strategy on lower levels as any new weakness has the potential to be the beginning of a new move. If the integrity of the previous session low remains intact, DP FADE strategies can be accepted. Use UP BREAKOUT strategies as a signal to FADE a negative pull-back at the DIR. Only take this trade if the previous session low point remains intact.
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