Buy the Pullback or Sell the Reversal?
Markets opened with weekend “gaps” and big moves to start the week, but they finished with deep pullbacks off the highs — or is this pullback really a reversal?
Should I buy this pullback, or should I look to sell into the reversal? The difference is going to be important for tomorrow’s trading – are you ready?
Crude Oil Bulls Failed to Hold the Highs
Crude Oil is bearish with a 123-Breakout, which tells me to look for sell set-ups at the high of a new Hidden Channel coming down overhead.
But what about that trading-range from the beginning of the day? If the buyers can take back control, then I start looking for pullbacks and a re-test of the high.
E-Mini S&P is Back in the Hands of the Sellers
E-Mini S&P is bearish after a 123-Reversal into a small trading-range on the chart, which tells me to look for sell set-ups above the high of the range using the ‘2-Try Rule’.
And if price keeps bleeding lower, the target is last week’s range, and I’ll be looking for sell set-ups off the high of a pending Spike & Channel.
Nasdaq is Giving us a BIG Clue (Do You See It?)
Nasdaq is bearish after the bulls failed to hold the last pullback, which tells me to look for buyer-failures as sell set-ups up at the high of a new Hidden Channel.
And if the buyers can take back control, then I wait for a bear-trap set-up so I’m not chasing the market higher.
Gold Collapsed Back to the Lows, Did We Miss the Bus?
Gold is bearish into a range-bound market, telling me to look for sell set-ups using buyer-failure up above the high of the range.
Not to mention, we also have a “grind break” waiting just above the range, tipping us off that sellers are most likely waiting up there for a prime spot to get short.
Euro is Bullish, But Don’t Tell the Bears!
Euro is bullish with a strong pullback to the low of a bullish Spike & Channel pattern, which is telling me to let the sellers try a few times before I start buying this market for a re-test of the highs again.
And don’t forget that triangle/range from last week, because if we do see this market tumble off the highs, we’ll be back in that range, focused on buying off the lows again.
“Nobody can go back and start a new beginning, but anyone can start today and make a new ending.”
