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 differenc…
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?
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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 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 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 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 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,..
