Daily Analysis of NASDAQ100 Futures

By , January 18th, 2012 | Featured, Market News | 0 Comments


Technically the market is pressing the NEUTRAL UPPER EXTREME and is flirting with a shift into a positive trend mode. The MKT will need to hold positive structure if it is to avoid falling back into a digestive trade.

On the Sell side REVERSAL strategies off major inflection points will work best as the positive momentum is trying to ramp up and will no doubt produce a false positive signal before it reverses. If the integrity of the previous session low remains intact, avoid FADE strategies as expectation is for a higher trade. BREAKOUT strategies are a lower probability and should just “go”. Risk little and have a resting defined target.

On the Buy side FADE and REVERSAL strategies are recommended off support inflections. As long as the MKT continues to hold positive structure, these strategies should be aggressively taken with the expectation of a move into a BULL TREND position. BREAKOUT strategies should only have 1 pullback after a resistance breach, bottoming out above Directional support if they are going to follow through in the session. Any more and the market will be vulnerable to a neutral shift.

Note: The MKT is pressing into the upper digestive extreme and is flirting with a shift into a BULL TREND position. Beware of a false positive signal reversal as prices will be extended and can quickly snap back.

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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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