This is the Perfect Pullback for Friday!

One more day this week, let’s make it count!

Everything’s bearish going into Friday’s trading session, but look closely and you’ll see some hidden “traps” on the charts.  Here’s why…

Emini is bearish, but the SIZE of this afternoon’s move tells me I need to stay patient for a DEEP pullback before I sell it short again tomorrow…

Nasdaq is bearish, but a measured-move “overshoot” tells me a 2-legged pullback is likely going to be the best place to get short…

Crude Oil is bearish too – but we’re sitting at multiple support levels just below a 2-day range.  I’m looking for sellers to get trapped, so I can buy into stops!

Plenty of opportunity on Friday – don’t fall for the traps, wait for these perfect pullbacks!

E-Mini S&P (ES):

E-Mini Keys to Success:

Sellers have control on the Emini ES, and with such a LARGE move lower to finish the day, we can expect either a sideways range down here, or a deep pullback (profit-taking) bounce off these lows.

Either way, with all this momentum going lower, we can assume that any pullback off these lows will be seen as a selling opportunity by the bears.  The key will be waiting for the bounce, then looking for the proper entry signal.

Buyers need to be patient right now – they need either a 123-Reversal off these lows, or they need to wait for a crown reversal.  Either way, they need to sit on hands and wait.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

Sellers have control on Nasdaq this evening with a massive run lower to finish the session.

The size of this leg down suggests that sellers will most likely wait for a deep pullback off these lows before they try selling more tomorrow, so it’s best to stay patient at this point.

If we don’t get the deep pullback, then we start looking for a range down here – ranges act like magnets, so the plan will be to sell off resistance levels above the range using buyer failure patterns.

Buyers have a tough job ahead of them – it’s too bearish to buy this bottom, and even after a strong bounce off the lows, they can assume there will be sellers waiting.

The best way to buy this market will be to wait for a retest of the low and look for a crown reversal pattern using the 2-Try Rule.

Crude Oil Futures (CL):

Crude Oil Keys to Success:

Crude Oil is bearish with a strong run lower to finish today’s session, but it’s hard to justify selling down here because of the range above us acting like a price-magnet.

Hopefully sellers can see that we’re sitting on multiple support levels below this range, so the best plan is to look for longs back up into the range.

Buyers need to be patient, however, waiting for sellers to try a couple times down here before they get long. 

Once price starts rotating higher, now buyers can look to “trade the rotation” back up to the opposite side of the range using a 123-Reversal into a new bull channel pullback.

Sellers aren’t completely out of the picture – if we continue lower, breaking the pendulum-swing on strength, then we can start looking for shorts off the high of a new bear channel with a target down at 82.