June '12 DAX: Neutral Digestion

[JS Services]

- The MKT is in a digestive position with a negative technical bias. On the SELL side accept FADE, BREAKOUT and REVERSAL strategies off major inflection points. DP SELL BREAKOUT strategies should just "go" and not look back. DIR FADE strategies after a negative breakdown signal are good opportunities as well. If the trade just "hangs around" after a breakdown signal, it is likely that more digestive action is to come. Be more aggressive with UP FADE and REVERSAL strategies and resistance inflection points at or against the previous session high point.

- On the BUY side DIR and UP BREAKOUT strategies are aggressive and should hold structure if they are good. DP BUY FADE strategies are aggressive and if they are going to work should do so on the initial test of support. Repeated tests are more likely to give way to a lower trade. BUY REVERSAL strategies are recommended off the DP only, as the MKT is vulnerable to a negative trend shift. The probability is to the downside today so don't get stubborn buying breaks.