Pullback or Trend Reversal?

We saw some big moves on this “Reaction Monday”, but it’s easy to see that we’re too high to buy right now, so I’m waiting for a pullback…

And as I wait for a pullback, I’m always asking myself, “is this a pullback, or is this a full trend reversal?”  – so, let’s make sure we plan for both situations.

Crude Oil is Strong, But Check Your Levels

Crude Oil is bullish with a strong run higher, a 2-legged pullback, and a re-test of the high.

The re-test of the high confirms the bulls are clearly in control of this market, but this location isn’t great to start buying.

My plan instead, is to wait for a pullback into the battle-zone, or look for a 2-Try Breakout Pattern to new highs tomorrow morning.

E-Mini S&P Hunts for the Pendulum Swing

E-Mini S&P is bullish as it rotates off the low of a range with strength.

This move for the bulls is rather strong, which tells me to look for buying opportunities, but I don’t want to buy into these highs.

Knowing this, a better plan would be to wait and see if I can buy a pullback at the low of a new Hidden Channel with a target going back to the high.

Nasdaq is Playing with Fire Up Here

Nasdaq is bullish and just a few inches away from reaching two major resistance levels overhead, which is a horrible place to look for buy set-ups.

With that in mind, I need to stay patient and wait for a pullback off these highs, ideally around the reversal-line at 7605.

I’m also keeping an eye on a possible reversal, which means I’m watching the moving-average closely to see how price-action responds.

Gold Loves Has It’s Eye on April’s Low

Gold is bearish after a 123-Reversal off today’s high, which now tells me to look for selling-opportunities at the high of a new Hidden Channel.

It’s also important to remember that Gold was bullish to begin today’s session, which means I’m going to be watching the moving-average to see if this next move higher is a pullback or a full reversal.

Euro Looks Strong, But Do You See Overhead?

Euro is bullish with a Spike & Range pattern, telling me to avoid buying into the highs and wait for a ‘2-legged pullback’ to buy into seller-failures below the range low.

Keeping that in mind, I can see a trend-line coming down overhead, which will tee-up an easy ‘2-legged pullback’ if we can get the right entry pattern.

“Trading is a game of probabilities and pattern-recognition that can be won by anyone who is willing to invest the time to learn the business, develop the skills, and maintain the trader’s mindset.” – Joseph James