Ready for the Correction | Crude Oil, Gold, E-mini & Euro Futures 01/25/16

Click here to download today’s charts

“The major
value in life is not what you get. The major value in life is what you become.
That is why I wish to pay fair price for every value. If I have to pay for it
or earn it, that makes something of me. If I get it for free, that makes
nothing of me.”

Notes for Tonight’s Newsletter:

Crude
Oil is bearish after giving back all of Friday’s gains, but 3 legs and a parabolic
wedge to finish today’s session tells the bears to take profit so we will
look for a bullish correction before another leg down tomorrow.  We have a bear channel that wants to complete
rotation
down to the lows but the measured-move
got in the way this evening which tells us to look at an undershoot
of the channel low into an overshoot up at the highs which makes perfect sense
before the sellers look again tomorrow. 
On the other hand, a new higher-high
and buyers holding the pullback
will give bulls the confidence to send price back higher tomorrow so be alert
after the bullish correction off these lows.

E-mini
S&P is bearish but with a measured-move
and a monster overshoot
of the bear channel lows we expect the bears to take profit and bulls to
correct higher before the bears look for another sell.  Sellers will stay patient to wait for the
buyers to fail to hold a pullback
for the next leg down, and the bulls want to see a successful hold of the first
pullback to get a decent shot to buy back up to the channel highs, using the overshoot
as a good target going higher.

Gold
is bullish but the buyers appear to walking on ‘thin ice’ this evening after a
break and re-test of a bullish spike
& channel appears to be struggling to finish the move higher.  We can easily see the bulls in control this
morning with a spike
& channel pushing higher, but look closely and you can see the break
and ATTEMPT to go higher at 11:30am EST this morning before the bear-trap
at the lows at 1:30pm EST before finally making a strong move higher… but
look… the strong bull candle is met with selling which does NOT make sense if
this is a strong bullish market.  With
that said, the buyers MUST prove they want this on the next pullback
because if they fail the sellers will try to run this price back to the round
number at 1100.0 which also happens to be the base of the spike
& channel.  if the bulls can hold
the moving average they will look to complete the measured-move
but if they fail we will expect an attempt back to 1100.00 and 1096.0.

Euro
is bullish this evening but we completed the measured-move
at the highs of the channel
which tells us to stay patient for the next buying opportunity back at the
support levels below.  Three
pushes higher today, combined with a measured-move
at the channel-high tells the buyers to take some profit and look to buy more
after a bearish correction off the highs. 
We will be looking for the next buying opportunity at the channel-low,
but even better would be the buy-zone
down at 8360-8280 with a head-fake at the swing-low before pushing back
higher.  On the flip side, if we get a lower-low
the sellers may hold the pullback
and try to send price back to where it started today around major support at
1.0808300.