Today was a slow day for the markets, the Feds meet next week and several key reports come out later in the week. Although it was a slow week, the charts still speak and never lie. Resistance was reinforced on the YM and ES and the NQ fell below the .618 Fib line to start the ambush play. This would indicate a potential short setup for all three markets.

CL held its recent change of polarity at $90, the high of today’s candle was $90 and that didn’t hold. The current candlestick could be bullish, but I would wait for price to move above $90 before entering a long position. If price crosses above $90 I would take that trade to the long side because of the risk/reward, the first target would be $95 and my stop would be just below $90.

Hopefully everyone had a good weekend and a good Monday.

The market continues to push higher with more news that the Fed may cut rates in a few weeks. Never forget to listen to your chart, that’s the mistake I made a few days ago and that’s why I was wrong. Now that I plotted support and resistance lines again it is clear the YM is about to hit the current trend line and a few more resistance levels. I do believe this will hold, but only time will tell. The ES is very similar, like usual.

The NQ broke out a few days ago and went the opposite direction than I had thought it would. The past two trading days we have seen dojis which indicates the rally may be losing steam, there are more sellers in the market now than before which is preventing price from auctioning higher.

CL moved below 90, and this is a clear short setup. Pay careful attention since this is a very volatile contract and could easily test $90 again next week. If $90 holds as resistance then this will be a change in polarity, which is very significant.

That’s pretty much it for now; I will update the blog on Sunday with weekly charts and a few stocks that I will watch. Have a great weekend.