This “Pendulum Swing” Reversal Could Be HUGE Payday!!
Oh boy, here we go again!
Another big move on the charts today means big follow-up opportunities tomorrow… the most exciting is this pendulum-swing reversal!
Emini and Nasdaq are bullish, but if you understand why Oil puked lower today, you’ll know why I’m so excited to grab that same setup tomorrow!
Speaking of Crude Oil – sellers made a massive run lower without any real pullbacks today, so I’m watching (3) key levels for shorts tomorrow!
Don’t forget – Powell speaks on Thursday, so make these trades count!
E-Mini S&P (ES):
Emini is bullish, but a pendulum-swing off the high may change that!
The Emini made a big run higher today, all the way back to the highs of last week’s big range.
Buyers have control of this market, but with sellers coming in strong off major range highs, combined with this “rotation off the high” of this range, it doesn’t look easy for buyers to do much at this point.
Sellers will be looking for shorts on the way back to the range from yesterday, along with a double-top reversal off the high.
Buyers need to hold this pendulum-swing and use a 2-try failure to trap in the bears for a run back to the highs, or wait for a strong breakout going higher.
Keys to Success:
- Strong bounce off major range highs, combined with a pendulum-swing rotation off today’s range highs.
- Buyers want to hold the pendulum-swing, or get a breakout
- Sellers want a breakout lower, or a short off today’s high
- Breakouts are wide open in both sides, but sellers have the edge for now.
E-Mini Nasdaq (NQ):
Nasdaq is bullish, but this rotation off the high may take us lower!
The Nasdaq made a strong spike higher into a range this morning, but now we have a strong rotation off the high, giving the bears a prime opportunity to grab control.
Buyers have a tough job right now. They need to hold the pendulum-swing and trap in the bears to get long off these lows.
Sellers have it much easier because they have the short-term momentum on their side. They can sell resistance levels above the range, along with breakouts going lower.
Keys to Success:
- Strong rotation off the high of today’s range
- Buyers want to hold this pullback for a retest of the highs
- Sellers want to see a reversal back to yesterday’s low.
- Breakout wont be easy for the bulls because of major resistance overhead.
Crude Oil Futures (CL):
Big move lower today says be ready to sell deep pullbacks!
Bears made a strong run lower into a range this afternoon, and without any deep pullbacks today, we can assume sellers will be waiting for one tomorrow.
Sellers will be waiting to sell into any pullback off the low, along with breakouts going lower.
Buyers have to be carful right now, especially as price rises. They can’t get fooled into thinking a deep pullback is a reversal. Best to either wait for proof of a 123-Reversal going higher, or wait to buy a double-bottom reversal.
Keys to Success:
- Big move down today without any meaningful pullback
- Sellers want to sell the bounce off this low.
- Buyers want a reversal
- Breakout looks good for bears down to $100 round number.
