The early headlines on Wall Street for the Tuesday session allude to “mixed” trading action. For the first hour of trade, the DJIA is up 75 and the S&P 500 is near flat. At the moment, a majority of market participants are non-committal going into tomorrow’s U.S. CPI release.

Perhaps the biggest story in today’s trade is the weakness in commodities. Both gold and crude oil are running to the bear, testing key psychological levels. For WTI, $55.00 is coming into view; for December gold, 1200.0 is the premier catalyst for two-way action.

December E-mini DOW Futures

The three-day bearish run continues in the DJIA, with traders determined to revisit the 25000 level. A simple glance at the daily chart for December E-mini DOW futures pretty much tells the tale.

Here are the key levels to watch in this market for the rest of the session:

• Resistance(1): 38% Current Wave, 25434
• Support(1): Daily SMA, 25102

Bottom Line: A nice counter-trend play is setting up for the December E-mini Dow. For the remainder of today, I will have buys queued up from 25105. With an initial stop at 24989, this trade provides a solid entry location to the bull and a potential 100 tick payoff.

However, be aware that this is a counter-trend play. Be sure to have your stops down and leverage in check before going long this market!