"Nobody can go back and start a new beginning, but anyone can start today and make a new ending."
Notes for Tonight’s Newsletter:
We're back to the action this evening with an important session coming tomorrow ahead of Janet Yellen's two-day testimony starting on Wednesday which means tomorrow is going to be one of the most important days of the week; Crude Oil is bearish and trying to finish a move back down to the battle zone, E-mini S&P is bearish and trading at a major support level, Gold is sideways and range-bound in the middle of a triangle, and the Euro is bullish but showing signs that the bulls may be finished at least for the short-term.
Crude Oil is bearish and trying to finish a move back down to the battle zone with the potential of going sideways tomorrow around the previous month's closing price at 45.55. Sellers have control after a strong move off the highs which tells the sellers to be looking for opportunities to sell retracements for a second leg down to new lows and possibly a re-test of today's low. Buyers on the other hand have a tough job ahead of them because they have multiple levels of resistance overhead. The best option tomorrow for buyers will be if we get a trading range around the previous month close (45.55) or if they can find a way back above the falling resistance trend-line coming overhead.
E-mini S&P is bearish and trading at a major support level inside a bear wedge which tells the bears to be looking for traps and failures above the previous swing-levels overhead or risk trying to sell a new low with a small target down to the wedge at 33.50. The buyers on the other hand need to see some serious strength and then hold a pullback if they want to deter the sellers from selling into any move that comes off the lows tomorrow.
Gold is sideways and range-bound in the middle of a triangle this evening which tells us to buy the lows, sell the highs, avoid the middle and focus on failures tomorrow using the pendulum swing. With price sitting in the middle of this range we don’t have much to work with in the short term so our goal will be to stay patient and looking for sellers to fail at the lows, buyers to fail at the highs and look for opportunities going back into the range tomorrow until we see a strong enough breakout to give us a trend to follow.
Euro is bullish but showing signs that the bulls may be finished with this move in the short-term and trying to either re-test today's lows or start trading sideways around the round number of 13,000 tomorrow. The bulls had control this morning but when they used the bottom of the bull channel as resistance and then made a strong move off the highs it leads me to believe that buyers got out and now will give the sellers a chance to hold this pullback but the round number seems to be stalling. Buyers are looking for a breakout-pullback above the resistance trend line for a move back to re-test the highs, the sellers want to see a strong break down and then hold the pullback for a move down to the lows, and we are going to be watching to see if both sides struggle and this turns into a range tomorrow around the 13,000.
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