122711

The ZoneTrader is currently telling us to focus on the monthly profile in order to determine current short-term direction.   It is currently attempting to make a bullish breakout and is currently trading near the top of the Persistence Zone, TF opened inside the PZ on the month giving us no control bias, currently the bulls and bears are fighting for control of the market on the month.  The close of the next 1 possibly 2 candles will be important as we have already touched MR1.  Now we need to see if TF fails to make a breakout which will be signaled by a close of a candle lower then the low of the prior candle.  If this occurs then we look for a retrace to the downside 1st target 737.40, 2nd target 725.70, 3rd target 718.40.  If TF continues to attempt to make a bullish breakout on the Monthly Profile by continuing higher towards the midpoint between MR1 and MR2 756.50 then look to play buy signals on the intraday and hold longs.  TF will also be breaking above the top of the PZ 747.10 telling us the bulls are attempting to take control of the market on the month.  Bulls are also attempting to take control of the market currently on the quarterly profile, and they are in control on the yearly and this profile is suggesting higher prices to 797.00.  The yearly has failed to establish a downtrend and is reversing to the zt pivot at 797.00.  However in the current position TF is in on the Yearly, and Quarterly Profiles there is sufficient room for a swing lower first before completing its retrace to the Yearly Pivot.  This swing will display itself on the Monthly Profile which is another reason we will be keying on it throughout the week.