The highlighted pennant pattern on the XLE (energy sector ETF) daily chart, below, shows the potential for a major directional break coming after this recent consolidation.

On weakness back below $85, I am stalking an ERY long, the triple-bear energy sector ETF. On strength, a quick long can be had. But the chart remains damaged goods, so be quick.

Who will win the pennant?

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While U.S. equities remain relatively unfazed buy the strong Dollar, the rest of the world’s bourses and commodities seem to be feeling the heat.

On the Dollar ETF, below, note the coiled daily chart pattern.

Going forward, it will be interesting to see if U.S. equities can withstand another sharp rally higher by King Dollar.

Drop me your top morning watchlist ideas…

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For you night owls out there, feel free to drop me any market/trading-related topics you would like me to cover in a weekend video.

In addition, anything else about the current market, feel free to drop below.

Speak your mind, night owls.

We should gain more insight on Thursday as to how the market truly feels about the end of QE, and other aspects of the Fed’s statement on Wednesday.

So, let’s stay nimble and prepared, and go with HUN as a short setup into further weakness, seen bear-flagging on the first daily chart, below–Chemical names have been under pressure of late, as a group.

And on the long side, if JWN can clear $72 above it can be seen as one of the better base breakout setups in the tape, from that tight sideways consolidation seen on the second chart.

Drop me your top tickers overnight

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The SPY intraday chart, below, shows a falling channel since the open this morning.

Even with the FOMC announcement of the end of QE, the chart has not yet broken one way or the other.

In determining whether to swing some index longs or shorts, this chart is going to be one of my key reference points.

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I’m still flat ahead of the Fed. Let’s see what maniacal policies they have up their sleeves, next.

After the reaction to the Fed, I am looking to get involved.

If the market sells, some short ideas: HD LOW SBUX UA UNP

if we rally: TUBE, precious metals and miners, natural gas.