“I am an optimist. It does not seem too much use being anything else.” - Winston Churchill
Notes for Tonight’s Newsletter:
All of our markets have bullish momentum leading into tomorrow's session; Crude, Gold and Euro both trading inside channels and the E-mini S&P is trying to recover from a nasty fall earlier today.
Crude Oil is bullish and trying to finish rotation back to the highs of a bull channel this evening and complete a triple measured-move tomorrow but there are a few levels of resistance getting in the way that need to be broken first. The bull channel tells us to expect rotation back to the highs of the channel, or look for a 'trap-low' below a prior support level before we make the next leg higher. The measured-move was completed at 45.91 and will act as resistance before the buyers can try to finish a triple measured-move up to 46.34. Buyers need to either get a strong breakout-pullback above this resistance, or they need to wait for price to 'trap-low' below prior support so they dont have to buy into this resistance area.
E-mini S&P is trying to re-group after an incredibly volatile session today and a recent double-bottom reversal at a measured-move is giving the buyers a chance to take price back to channel highs tomorrow. The large bear channel is almost sideways and can be traded almost like a range, buying the low and selling the high, and has a double-overshoot at the lows which resulted in most of the sellers taking profit. The measured-move was completed and shows a perfect example of a double-bottom reversal which is giving the buyers a chance to take control of the market going into tomorrow's session.
Gold is bullish and trying to finish a big measured-move but price is trading at the highs of a spike & channel which tells us to wait for a correction back to support levels for the most reliable trades tomorrow. The spike & channel tells us to look for one more buying opportunity at the lows before waiting for a deep pullback into the correction zone down at 1255.5. There is also a much steeper bull channel which is unlikely but possible to finish rotation back to the highs but they need to breakout and pullback above the spike & channel highs to accomplish that first. The measured-move and 'triple-up' make for easy targets for the bulls tomorrow.
Euro is bullish and trying to finish the rotation back to the highs of a bull channel but we're in the middle of a trading-range so we may have to wait for a 'trap-low' for the best opportunities to finish the move higher. The bull channel tells us to expect rotation from the low back up to the highs, which will also complete a measured-move target for the buyers tomorrow. The trading-range is the big obstacle for the buyers right now because they need to see a 'trap-low' below the lows or a successful breakout-pullback above the highs for the more reliable trading opportunities.
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