How Is This Still Bearish?
Happy New Year, and welcome back to the Nightly Newsletter!
The markets look great going into tomorrow’s trading session, with a combination of strong trends and narrow trading ranges, it’s easy to identify the best patterns going into tomorrow morning – are you ready for this?
Oil Bears Have Control, But Can They Keep It?
Crude Oil is bearish with a strong run lower into a trading-range, which tells me to look for sell setups above the high of the range tomorrow morning.
But what if price tries to run lower? I’m looking for either a crown-reversal pattern to buy the lows, or a 123-Breakout pattern for a continuation lower.
Buyers Need More Info on the E-Mini S&P…
E-Mini S&P is bullish with a strong run higher, but look closely and you can see we never got any deep pullbacks today, which is the big clue for tomorrow.
Knowing this, buyers are waiting for their opportunity to buy the next deep pullback, and I’ll be looking or a “nested” failure pattern if we get it.
But what if we don’t get the pullback? the buyers may not want to take profit, in fear of missing out on the move back to all-time-highs…
So if I see the market start trading sideways, my plan is to buy underneath the range using a seller-failure pattern.
I’m Watching Two Support Levels on Nasdaq…
Nasdaq is bullish with a strong run higher today, telling me to look for buy setups at support levels down near the low of today’s channel…
I can see two key support levels to watch, one is shallow, and the other is much deeper, and depending on which support level holds, that will determine which entry set-up will work best.
Gold Bears Want to Fill the GAP, Where’s the Best Entry?
Gold is bearish and trying to fill the GAP from earlier this morning, but we’re trading sideways inside a range, which tells me to sell up above the high of the range tomorrow morning.
But if Gold tries to run lower, I have to be careful because that GAP down at 55.2 is considered major support and I’ll need to use a “trap” entry pattern before we get there…
“I’ve come to believe that all my past failure and frustrations were actually laying the foundation for the understandings that have created the new level of living I now enjoy.”
