3 Ways to Trade this Slingshot Reversal

Oh boy, here we go again!

Everything’s bearish going into Thursday, and this “Slingshot Reversal” should have everyone excited for the next pullback…

Crude Oil is bearish – with price running back to yesterday’s range, there’s a slingshot reversal pattern setting-up as we speak!

Emini ES is bearish – we just broke today’s pendulum-swing, so I’m excited to short the “first channel” test…

Nasdaq is bearish too – momentum isn’t as strong, so I’m waiting for a deep pullback into a “nested” buyer failure to sell into stops…

There’s no shortage of opportunity on Thursday – are you prepared?

E-Mini S&P (ES):

E-Mini Keys to Success:

Sellers have control on the Emini ES this evening, and with such a strong finish of the day, it’s safe to assume that any retracement will be seen as a selling opportunity on Thursday.

If price bounces higher – sellers will be looking for shorts off resistance levels overhead, while buyers will try to hold a 123-Reversal and buy the first pullback if they’re successful.

If price goes sideways – stay patient and wait for selling opportunities at resistance levels above the range.  Trade the pendulum-swing going lower.

If price keeps pushing lower – the strength of this move says the first bounce off the lows will be sold, so stay patient and be ready to sell into any bounces off the lows.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

Nasdaq is bearish and finished the day with a strong run lower.

With all this bearish momentum into the closing bell, it’s safe to assume that sellers will be looking for ways to get short on the next bounce (even with that pendulum-swing support just below us).

If price continues lower, we have a “runaway zone” just below us, so it’s best to stay patient and wait for your shot to sell into the first bounce off those lows.

Buyers need to stay patient right now – they can look for an aggressive “crown reversal” to get long off these lows, or they can wait for a more reliable 123-Reversal and buy the first pullback off the new channel.

Crude Oil Futures (CL):

Crude Oil Keys to Success:

Crude Oil is bearish as it rotates down off the high of today’s trading-range.

With bears in control of momentum, a break below the pendulum-swing support (84.84) will have plenty of sellers eager to short the next pullback using yesterday’s range as a magnet.

Buyers have a tough job ahead of them – this momentum is strong coming off the high, we have a range (price-magnet) below us, and there’s going to be a resistance trend-line coming down overhead.

The only safe way to get long right now will be waiting for a crown reversal off the pendulum-swing, or 123-Reversal into first channel pullback.

Don’t forget – Monday’s holiday means tomorrow is the weekly Inventory Report at 11:00am EST. Be sure to avoid trading during that time.