Trade this ‘Exhaustion’ Reversal on Thursday
Everything is bullish going into Thursday’s trading session, but it’s hard to find a safe way to get long right now – here’s why…
Emini, Nasdaq and Crude Oil are all trading into resistance levels above today’s range…
Ranges act like magnets – so I can’t get long until we see PROOF of a breakout…
In the meantime, I’ll be looking for what I call “exhaustion reversals” off these highs – let me show you what it looks like…
E-Mini S&P (ES):
E-Mini Keys to Success:
Bears took control into a range on the Emini today, but the bulls were able to grab control this afternoon and are currently trying to retest the major highs.
Buyers have control of the short-term momentum, but this range (magnet) below us, combined with major resistance above us makes it hard to get long right here.
I’ll gladly look for buying opportunities if buyers show us some strength through these highs, but it’s easy to look for shorts with buyer failures until that happens.
E-Mini Nasdaq (NQ):
Nasdaq Keys to Success:
Nasdaq turned bearish and ran lower into a range this morning – buyers are now trying to breakout to new highs, but they have a lot of resistance up overhead.
Buyers do have control of the short-term momentum, but with all these resistance levels overhead and a range below us acting a magnet, I’ll be looking for shorts back into the range until we see a breakout confirmed going higher.
Crude Oil Futures (CL):
Crude Oil Keys to Success:
Crude Oil traded sideways for most of the day today with buyers completing their pendulum-swing rotation off the lows sitting right on a major support trend-line.
Buyers have control of momentum right now – but just like the Eminis, we have a range acting as a magnet below us and multiple resistance levels above us.
I’ll gladly buy this market if we can see proof of a successful breakout going higher, but until then, I’ll be looking to use this support trend-line as key resistance for entries going lower.
