I look for pullback trade set-ups in trending markets and one helpful tool I use is my trend map. I follow 37 markets and break down each market into 5 categories:
double green (very bullish)(5)
single green (bullish)(4)
yellow (neutral or sideways)(3)
single red (bearish)(2)
double red (very bearish)(1)
Here is my futures markets Trend Zone as of Friday’s close. The overall tone of the markets dropped to its lowest bullish rating since October 30th with total bullish markets edging lower from 24 to 19. The most interesting group to me right now are the currency markets. It appears the Dollar could be forming a short term rally as most of the currency markets have gotten a bit overextended. I think this could be the start of a small correction or sideways chop for awhile. There are some strong volume @ price clusters that could prove interesting levels to re-enter these currency markets for a resumption of recent trends. I will be keeping my eye on them.
|Very_Bullish (5)||Bullish (4)||Neutral (3)||Bearish (2)||Very_Bearish (1)|