This Reversal Could Make Your Entire Week!
Oh boy, here we go again!
Markets made some BIG moves today, which means we have some big opportunities for pullbacks and reversals tomorrow…
The Emini and Nasdaq are both bearish, and I have some easy pullback entries I’m watching – but there’s one reversal pattern that could make our entire week!
Crude Oil is bearish too, and I have a great strategy to short the next pullback – but the trade I really want is the reversal off these lows.
Timing is everything with reversals, so make sure you watch!
E-Mini S&P (ES):
E-Mini Keys to Success:
The Emini is bearish with a runaway move going lower, which suggests that sellers will be waiting for opportunities to sell into any decent pullback off today’s lows.
We also made a rather large move lower today, and big moves like these often result in ranges the following day. Sellers can look for shorts at resistance levels above a new range.
Buyers need to stay patient right now. It’s best to wait for either a crown reversal to buy off the lows, or a 123-Reversal into first channel pullback entry going higher.
E-Mini Nasdaq (NQ):
Nasdaq Keys to Success:
Nasdaq is bearish with a strong run lower today, which means we can assume sellers will be looking for ways to sell into any deep pullback off today’s low.
Sellers should also keep an eye out for a range developing near today’s low. If we see a range, then we look for shorts off resistance levels above the range.
Buyers need to sit on hands and wait for now. They can buy a crown reversal using the 2-Try Rule, or they can wait for a 123-Reversal and get in on the first pullback. Whatever you do, don’t force the long side!
Crude Oil Futures (CL):
Crude Oil Keys to Success:
Crude Oil is bearish after price collapsed off a large GAP-UP to start today’s session.
Sellers have control of momentum, and this range near today’s low tells us to look for short off resistance levels above the range. This support trend-line will make for an excellent entry on the opposite side.
Buyers have a tough job ahead of them because we need to see momentum turn bullish before we can start looking long, but that will put us up around resistance levels above us. I would rather get long off major lows, than chase price higher.
