We had a lot of deep pullbacks to finish today’s session, and one question on my mind going into Wednesday morning – is this a pullback or a full reversal?

The answer to that question is important because a reversal tells me I should be selling this move lower on Oil and the E-minis, and buying this move higher on Gold…

So what’s the trick?  How do you know if this late-session move is a pullback or is it a full-blown reversal?  And what’s the best strategy?  I’ve got you covered in tonight’s newsletter – are you ready?

Crude Oil is bullish and trading just below a trading-range this evening, which is a great place to look for a buy setup using a seller-failure pattern tomorrow morning…

But I’d like to see us pullback a little further for a better entry because I have three major support levels are stacked-up down and 56.40 and I’d rather look for the buy setup with a bigger target back into the range.

Can the Buyers Hold This Pullback on the S&P?

E-Mini S&P is bullish and trading at the low of a wide bull channel, which is a good spot to look for a buy setup, but this bearish momentum tells me I need to wait for the sellers to try twice before buying it back up again, so I’m going to wait for a “nested” seller-failure pattern for a more reliable entry.

I’m also watching for a range-bound market tomorrow because we have the head of the FED (Powell) speaking at 11 am, and if so, I’m going to switch my strategy to buying low, selling high, avoiding the middle and focused on failures.

Will the Sellers Finally Take the Nasdaq Lower?

Nasdaq is bullish, but this recent pullback was too strong for me to try buying off the low of this channel, so I’m going to wait for a more reliable entry by using a “nested” failure with a trap below the low of this morning’s trading range…

And speaking of range, that’s definitely on my radar for tomorrow, with Fed Chairman Powell speaking over lunch, we may be buying low, selling high, and avoiding the middle with failure setups tomorrow morning.

Gold Might Be Ready for a Reversal, Here’s Why…

Gold is bearish and trading above this morning’s range, and testing the high of a week-long bear channel, which at first glance, appears to be a great place to start selling…

But look closely, and you can see the move higher was very strong, and the range is very narrow without a lot of open space for me to work with…

Knowing those clues, I’m going to wait for a “Crown Reversal” pattern to avoid selling too low while absorbing the short-term momentum of the bulls.