This Pullback is the EASY MONEY Trade for Tuesday!

Welcome back – Happy Daylight Savings!

Markets are bearish going into Tuesday’s big Inflation Report, and it’s obvious the next pullback will set the tone for tomorrow’s trading session…

Momentum tells us to short the next bounce, but I think the easy money trade might be the reversal instead – let me show you why…

E-Mini S&P (ES):

E-Mini Keys to Success:

The Emini is bearish into a trading-range.

Sellers will be looking for shorts off resistance levels above this afternoon’s trading-range, or breakouts going lower.

We have some big support levels just below us, so it will be best to wait for a strong breakout, let it bounce, then sell into buyer failures for a retest of the lows.

Buyers need to be careful right now.  They can look for reversals off major lows, or wait for a strong 123-Reversal and buy the first pullback.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

The Nasdaq is bearish with a Spike & Range on the chart tonight.

Bears have control of momentum, and they’ll be looking for shorts off resistance levels above the range, or breakouts going lower on strength.

Like the Emini, the Nasdaq also has major support just below this trading-range, so a strong breakout into a bounce off the lows will be ideal type of entry if we go lower.

Buyers have options as well.  They can buy a reversal off major lows, or they can buy the first pullback after a 123-Reversal going higher.

Crude Oil Futures (CL):

Crude Oil Keys to Success:

Crude Oil is bearish into a trading-range this evening.

Sellers clearly rejected the idea of selling the high of this channel, so we assume we’re waiting for a deeper pullback up into the $105 area for the next round of bears entering the market.

Sellers can also look for a breakout going lower, using the $95 area as a target.

Buyers can look for entries using a crown reversal off today’s low, or they can wait for a 123-Reversal going higher.  Either way, they need to stay patient at this point.