[Al Skierkiewicz]

There are a lot of ways to handle this one. You didn't say how much resolution you needed so let's just look at one tick per revolution. There are reed switches available from lots of places. These switches close when in proximity to a magnet. Make up a mount where you can get two switches slightly separated (i.e. slightly different angles close to the shaft) Attach a magnet to the shaft and as the shaft rotates first one and then the other switch will close. All you have to do is sense which switch is turned on first and you will be able to tell direction. If you want more resolution, add more magnets or more switches.