JS Services S&P 500 Commentary
By JS Services - Tue 22 Jan 2013 03:03:02 CT
Related Keywords: Equity Index
** NEUTRAL POSITIVE TRANSITION **

Technically the MKT is in a NEUTRAL POSIITVE TRANSITION with the potential for a positive turn. Opportunity exists on both sides however there is a better chance of acceleration to the upside if the integrity of the previous session low remains intact.

On the SELL side avoid FADE strategies until after the previous session low point or major support has been broken to confirm a shift in momentum. Until then a better opportunity will be a REVERSAL strategy but only off the 1st major resistance level. This is a one shot trade using a low risk big profit target criteria. The idea is that the transition trade is over and a negative shift back into a NEUTRAL DIGESTION is expected. SELL BREAKOUT strategies can be profitable but they are aggressive and should use the same aggressive position management as a REVERSAL. Risk less, go for more.

On the BUY side accept BREAKOUT, FADE and REVERSAL strategies with the expectation that the current negative to positive transition will continue. Keep aggressive position management on 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 trade should be fluid with the MKT immediately taking back lost ground after any downside squeeze.

Note: The MKT is trying to shift from a negative to positive trend position. False starts and stops should be expected and position management adjustment anticipated, as quick momentum turns are the norm in this technical environment.


This commentary was created by
JS Services LLC a Market Research Company found at www.jsservices.com.

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