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. This past week saw a slight drop from 28 to 26 markets sporting a 4 or a 5 on the spectrum. However, the most bullish increased from 16 to 21. This is the most bullish this basket of markets have collectively been in 3 months. This continues to be a risk on market right now. Gold, last weeks most interesting market, saw a rally into potential resistance. It traded just inside an area that used to be strong support. The change of polarity concept could turn this area into resistance. The 1851-1882 zone on the continuation chart could prove to be very interesting. This weeks biggest mover is Sugar. It moved down 3 slots from very bullish (5) to bearish (2). This is a bit odd as the chart still looks in good shape. I wouldn’t be ready to call this a trend change yet. Most likely, Sugar could move into a consolidation period. Keep an eye on it.
|Very_Bullish (5)||Bullish (4)||Neutral (3)||Bearish (2)||Very_Bearish (1)|