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 temperature is now skewed to the bearish side for the first time since I started tracking this 9 weeks ago. We went from 21 markets sporting a 4 or 5 on the spectrum down to 14. We now have 19 markets with a 2 or 1 on the spectrum. The biggest movers week to week were Silver (SI) and the Australian Dollar (AD). They both moved down 3 slots from double green (very bullish) to red (bearish). This could be the start of a trend change for both of them.
The big question now becomes is this a correction before resumption of the preceding bullish trend for the majority of these markets? Or is this the beginning of a major trend change? I think we could see some choppy consolidation for the rest of this year. Stay tuned.
| Double_Green | Single_Green | Yellow | Single_Red | Double_Red |
| Very_Bullish (5) | Bullish (4) | Neutral (3) | Bearish (2) | Very_Bearish (1) |
| @C | @FV | @BO | @AD | @HO |
| @LH | @JY | @HG | @BP | |
| @S | @LC | @MP1 | @CD | |
| @SM | @RB | @US | @CL | |
| @TY | @EC | |||
| @W | @ES | |||
| @CC | @FC | |||
| @CT | @GC | |||
| @SB | @NE1 | |||
| @DX | @NG | |||
| @NQ | ||||
| @PL | ||||
| @RTY | ||||
| @SF | ||||
| @SI | ||||
| @YM | ||||
| @KC | ||||
| @OJ | ||||
| 4 | 10 | 4 | 18 | 1 |
| 10.81% | 27.03% | 10.81% | 48.65% | 2.70% |