“The secret to life is meaningless unless you discover it yourself.” - W. Somerset Maugham
Notes for Tonight’s Newsletter:
Markets are reacting to the FOMC Announcement this afternoon; Crude Oil and the S&P are both bullish and trying to re-test their highs, while the Gold and Euro are both incredibly range-bound and trying to find a direction for tomorrow's session.
Crude Oil is bullish and trying to re-test the highs of the range this evening but a recent 'channel-overshoot' and falling-resistance may give the buyers another chance to buy this market at a much lower price tomorrow. The major bull channel will be waiting as support if we get a deep correction lower, while the minor bull channel has an overshoot at the highs which will likely either overshoot the lows or give us a double-overshoot at the highs for a possible reversal tomorrow. The measured-move has already been reached which tells us to expect another test of the highs where we can also expect the sellers to be waiting for a possible reversal back to channel-lows. Meanwhile, there is falling-resistance which may keep the buyers from finishing the re-test of the highs until after the correction back to the lows of the channel.
E-mini S&P is bullish and trying to finish rotation back to the high of a bull channel. The recent 'trap-low' is a big sign of strength for the bulls, telling us that tomorrow may bring a strong move higher in the medium-term. The bull channel tells us to expect rotation from low to high and then back to the lows. The 'trap-low' occurred at the recent swing-low and shows the buyers' strength going into the closing-bell this evening after already making three legs higher in today's session, which is a definite clue to the overall bullishness of this market going into tomorrow's session.
Gold is range-bound and trading sideways after today's FOMC Announcement which means our plan is simple for tomorrow; Buy low, sell high, focusing on range-rotation and the failures until this market finds a trend in one direction or the other. The trading-range tells us to use rotation and failures to buy the lows and sell the highs, giving each side 'two tries' to break higher or lower tomorrow. The FOMC announcement broke both the highs and the lows of the range today which tells us to assume that sellers will defend the highs at 54.7 and buyers will defend the lows at 43.2 which makes the extreme highs and lows a big target for tomorrow.
Euro is similar to gold this evening, trading sideways inside a range, so our plan is to look for failures at the highs and lows to 'fade' the move back to the original range until we see this market find a direction tomorrow.
Test-Drive our Advanced Membership Click here to register for the Free Trial!
Are you a Crude Oil Trader? Click here to trade Crude Oil
Are you a Euro Trader? Click here to trade Euro
Are you an E-Mini Russell Trader? Click here to trade E-Mini Russell
Are you a Gold Trader? Click here to trade Gold
Join the Premier trade-room as an Advanced Member