Last weeks Russell set-up was tested here again, and held. Almost touched Tuesday’s low, but held. Now we see our first breadth buying extreme off the lows.
I am now long the $TF_F and $CL_F here as I think the lows are in for the week.
The chart you need to watch here is the dollar. The action we saw from Friday into today’s trade looks very bull-trapish.
The dollar broke out Friday, and gapped back down into its range at the open. That’s very un-bullish. Generally speaking, from failed moves come fast moves. This was the most crowded trade coming into the year, and a move lower could trigger a massive unwinding from a macro-perspective…especially considering how the “pro’s” are positioned here.
OA
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