This ‘Holiday Reversal’ Looks Great for Wednesday!

One day left before the Holiday, are you ready?

We have some great patterns setting-up on the charts tonight, and plenty of news to get these markets moving ahead of the Holiday…

The Emini and Nasdaq are bullish and trying to complete their “pendulum-swing” reversal off today’s low – I’ll be looking for traps and seller failures to get long…

Crude Oil is bullish into a range – I’ll be looking for ways to “trap in the bears” below today’s trading-range, or buying breakouts on the way back to $80…

Keep in mind – we often see strange things the day before a major Holiday, and a “Holiday Reversal” is always one of them.  Here’s my gameplan…

E-Mini S&P (ES):

E-Mini Keys to Success:

The Emini is “range-bound” and rotating off the lows towards the pendulum-swing target overhead. 

Buyers have control of momentum and will be looking for buying opportunities off the support trend-lines below, or breakouts going higher on strength.

Sellers need to be patient right now – momentum is too bullish and this support trend-line doesn’t give them many options.  It’s best to wait for momentum to turn and clear that support trend-line first.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

Nasdaq began the day inside a range, followed by a strong run lower for the sellers who retested the low and reversed going higher.

Buyers now have control of momentum and will be looking for pullback entries as price rotates higher.

Sellers need to stay patient for now – better to wait for momentum to turn in their favor than to fight this rotation at this point.

Crude Oil Futures (CL):

Crude Oil Keys to Success:

Crude Oil is bullish into what appears to be a new trading-range this evening. 

Buyers have control of momentum and will be looking for entries at support levels below the range, or breakouts above the range on strength.

Sellers don’t have any momentum, so it’s best for them to stay patient for a reversal going lower.  Once momentum has turned, then sell the first pullback on the back to the range from yesterday.