“Life is 10% what happens to us and 90% how we react to it.”
Notes for Tonight’s Newsletter:
Crude Oil and the S&P are trading inside of strong bull wedges this evening while Gold and Euro are trading inside of ranges ahead of Wednesday's trading session.
E-mini S&P is extremely bullish this evening and a narrow wedge gives the buyers a big target up around 2090 but the smart buyers will be waiting for a correction after price completed the measured-move at the end of the day today. The bull wedge tells us to look for buying opportunities at support levels with continuation set-ups and gives them a clear target up at 2093.0. The measured-move resistance has already been tested which tells us to expect a correction before price tries to re-test the highs and possibly make a run up to the next target overhead. The most reliable trades will come after a test of prior support levels to give the buyers a 'cheaper' entry price on the way up to the targets overhead.
Gold is trading inside a range this evening and a megaphone pattern tells us to expect rotation back to the lows but there is a short-term bull channel that may interrupt the move lower so we will be watching to see the reaction on the pullback. The megaphone is ultimately the same as a range; buy the low, sell the highs, focus on failures, and avoid the middle. The bull channel in the middle of the chart is the big variable this evening; the double-overshoot of the channel high tells us to wait and see what happens with the overshoot on the opposite side. If the buyers hold this next pullback we can expect them to shoot for the 1272.0 high, but if they fail we will likely see price collapse back to the low of the megaphone.
Euro is trading inside a range this evening, but a 'hidden channel' is trying to hold as support right now and how the buyers react here will determine what type of day we have tomorrow. The megaphone tells us to expect rotation from the high back down to the low, but the most recent bull channel tells us that buyers will be trying to re-test the highs, and a pending bull channel appears to be holding in the short-term. The last move down looks very strong, which tells us that sellers WILL be trying to sell this next pullback and who wins this next battle will most likely determine who wins the day tomorrow.
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