Technically the MKT is in a NEUTRAL DIGESTIVE position with a slight positive bias. Opportunity exists on both sides of the MKT but "choppy" sideways trading conditions should be expected.
On the SELL side avoid BREAKOUT strategies but rather FADE a positive reaction after a negative breakdown signal. REVERSAL strategies are recommended over FADE strategies off major resistance inflection points as "sloppy" trading conditions are expected. Any FADE trades should get confirmation or an exhaustion or turning point signal before executing. Position management adjustments should be anticipated for all sales as sideways trading conditions can quickly erase profits.
On the BUY side 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 giveback. FADE and REVERSAL strategies are recommended off major support levels. The probability is to the upside today but it is not a day to press it.
Note: The MKT is in neutral and is more likely to go nowhere fast. Don't get stubborn, however, if the MKT starts to get into trend mode as the contract may just be expanding its digestive parameters producing a one way trade into the close and new extreme.
This commentary was created by JS Services LLC a Market Research Company found at www.jsservices.com.
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