I’d Love to Grab this Reversal on Tuesday!

Welcome Back & Happy New Year!

Markets are bullish going into Tuesday, but look closely and you’ll see it’s hard to justify getting long up here…

Emini is bullish – but with a range acting as a magnet below us, I’ll be looking for a 2-Try Reversal going lower…

Nasdaq is bullish too – but we just completed the pendulum-swing target and I’d love to use this support trend-line as key resistance to get short…

Crude Oil is bullish – but there are (2) reasons we can’t trust these buyers, so I’ll be looking for a buyer failure to sell short (or proof of a breakout!)

Each of these markets look ripe for a reversal, here’s the signal I’m looking for…

E-Mini S&P (ES):

E-Mini Keys to Success:

We began today’s session with a range on the Emini, sellers tried taking price lower, but buyers held them off and now trying to complete a full pendulum-swing going back to the highs.

Buyers have control of momentum, but the idea of buying at the highs of today’s range (and just off the all-time highs) is a tough pill to swallow.

I’ll be looking for a strong breakout as proof we’re looking for more going higher, but in the meantime, I’ll be looking for buyer failures to sell short off these resistance highs.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

Nasdaq began the day with a range and buyers just completed the pendulum-swing rotation coming up from below.

Buyers have control right now, but with this range acting like a magnet below, and the pendulum-swing resistance overhead, the best opportunities will be the shorts going back into the range.

I’m not opposed to buying this market, but I’ll need to see PROOF of a breakout before I can look for longs off the low of a new bull channel.

Crude Oil Futures (CL):

Crude Oil Keys to Success:

Crude Oil looks a bit confused today – both the buyers and sellers have been trying to get some continuation but they keep failing, which is usually a sign of a trading-range developing somewhere on the chart.

Buyers have control, but until we can see proof of these bulls holding this pullback, I’ll be looking for shorts going back to the Weekend Gap at 75.45 below.

If buyers can indeed get a breakout, I’ll quickly find a new hidden channel and look for buying opportunities off the “first test” of the lows.