Watch this Pullback! (4) Ways to Get PAID Thursday!
‘Reaction’ Thursday, let’s do this!
FOMC is behind us, and with today’s big spike higher, we know professionals will be eager to buy pullbacks tomorrow…
But pick your spots wisely – these (3) pullbacks (and 1 reversal) are my favorite!
Emini and Nasdaq are bullish with big moves higher this afternoon. Pullbacks are certainly on my radar, but don’t forget the double-top reversal!
Crude Oil is bullish into a range – my instincts tell me to get aggressive on this, but the chart tells me there’s a much better entry…
E-Mini S&P (ES):
Emini spikes higher after today’s FOMC Announcement!
The Emini is bullish with a large spike higher this afternoon, suggesting either a sideways range or deep pullback to attract more buyers into this market.
Buyers want to buy deep pullbacks at discounted prices, or buy support levels below a pending range.
Sellers have to stay patient for the time being. They can look for a double-top reversal off today’s high, or a strong 123-Reversal going lower.
Keys to Success:
- Large, strong bull spike higher suggests another leg higher
- Buyers want a deep pullback at discounted prices
- Sellers want a reversal and move back to today’s range
- Open space for a bull and/or bear breakout
E-Mini Nasdaq (NQ):
Nasdaq spikes higher, traders wait for more info…
Nasdaq is bullish with a large spike higher. Big moves like these tell us to expect either a deep pullback to attract buyers into the market, or a sideways range.
Either way, buyers will be looking for ways to buy the dips around support levels tomorrow.
Sellers need to stay patient right now because this momentum is too strong to fight. Bears can sell a double-top reversal, or wait for a “pop and grind” reversal going back into the range from earlier today.
Keys to Success:
- Large, strong move higher says expect a range or deep pullback
- Buyers want to buy at cheaper prices, so they’re waiting for a pullback
- Sellers want a strong reversal, or a double-top rejection off the highs
- Beware the bull breakout because there isn’t much open space.
Crude Oil Futures (CL):
Crude Oil spikes higher as EU Proposes Ban on Russian Oil
Crude Oil is bullish into a spike and channel this evening, suggesting that traders will be looking for buying opportunities on deep pullbacks tomorrow.
Buyers can look for entries down near the low of the channel, or below the range from earlier today.
Sellers need to stay patient because momentum is very bullish at this time. Best to wait for a 123-Reversal or double-top reversal to sell at resistance tomorrow.
Keys to Success:
- Bullish into a range says buyers will be looking for entries below the range
- Buyers want deep pullbacks off today’s high
- Sellers want a reversal back to last week’s close.
- Bull breakout needs to be strong enough to push through major highs.
