How to Tell When A Rally Starts and Ends...

RSI, MFI, and ADX are all positive now, and selling pressure continues to decline.

Action to Take: Trump's delay on day-one tariffs bought time for negotiations, but February 1st looms large with potential 25% levies on Mexico and Canada. These headlines are whipsawing the dollar, which drives commodity prices – particularly oil, where Trump's push for increased domestic production adds another layer of uncertainty.

Dollar weakness can push WTI back toward $80 over the next week, potentially setting up a double top right as we approach Trump's tariff decision. This could be an explosive setup for energy. If Goldman starts floating $100 oil targets into this move, that's our cue to take the other side nd start writing calls.

As I mentioned yesterday, trade between oversold and overbought levels on the Microsectors Oil & Gas Exploration & Production 3X ETN (OILU). This is our new tool for measuring the energy move, and it sits right at overbought levels.

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Momentum: Positive Across the Board

Markets surged higher Tuesd…