“Luck is what happens when preparation meets opportunity.” - Seneca
Notes for Tonight’s Newsletter:
Markets are choppy ahead of tomorrow's FOMC Announcement but we can easily see some trading opportunities before Janet Yellen takes the mic tomorrow afternoon; Crude Oil and Euro are bearish this evening while S&P and Gold are bullish going into Wednesday's Session.
Crude Oil is bearish and trading at the lows of a bear channel after this evening's API-Inventory report sent prices tumbling back to new lows; This market is clearly bearish but trading at the lows is a big concern for the bears who will be wise to wait for a '2 legged correction' before looking for the next leg down. Buyers will be interested to buy the lows of this channel but the strength of the last push down tells them to wait for sellers to fail on the next pullback before they commit to the buy-side in the short-term.
E-mini S&P is bullish coming off the lows of a range this evening and a short-term range tells the buyers to look for 'traps' at the lows for the next leg higher tomorrow. Sellers will be looking for opportunities to sell the highs of the range and bear-channel but with the strength of the previous push off the lows is a big clue that buyers will be looking for another leg higher before they can start selling with reliability tomorrow.
Gold is bullish and trying to finish rotation back to the highs of a large bull channel this evening and the recent bull strength definitely tells us that buyers will be looking for the next pullback to the highs of the bear channel for the most reliable buying opportunity tomorrow.
Euro is bearish with a spike & channel this evening and with sellers already accomplishing the triple-measured-move and the double-down we expect that most of the bears will not be interested in selling this low and they will wait for a correction back to overhead resistance levels for the more reliable way to sell this market tomorrow.
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