Are You Seeing These Reversals Too?

Man, I’d love to grab some shorts on Wednesday!

Yea, the Eminis are bullish – but with ranges below us, and major resistance levels above us, I’ll definitely be looking for reversal opportunities on Wednesday…

Gold is already bearish with a big run lower today, so I’m looking to get short.  I just need to make sure I trade around a support trend-line in my way…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Bulls took control into a sideways range today, but sellers got a big breakout lower after lunch and took control of momentum.
• Sellers will be looking to complete their pendulum-swing back lower, while buyers will try and hold off the bears for a pendulum-swing of their own.

Top 3 Trades for Tomorrow: 

• UP – buy the bull breakout (or) sell the buyer failure off the highs
• DOWN – buy the trap (or) sell the bear breakout
• SIDEWAYS – avoid the middle of the range, wait to buy low, sell high.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Trending Market = Continuations, Reversals & New Ranges
• Big move today, keep an eye out for a range tomorrow
• We began trading sideways in a range, but a bull breakout over lunch sent prices running higher to the next market’s objective at 14585.
• Buyers will be looking for a range or a deep pullback to buy at cheaper prices, while sellers will be looking for exhaustion as excuse to get short going back into the range.

Top 3 Trades for Tomorrow: 

• UP – buy the bull breakout (or) sell the failure
• DOWN – buy the failure (or) sell the reversal
• SIDEWAYS – wait for the new range, then buy support levels below it.

Gold Futures (GC):

Gold Keys to Success:

• Trending Market = Continuations, Reversals & New Ranges
• Big Move today, expect a range tomorrow
• Strong moves in both directions suggest a range is forming
• Bears took it lower on strength, suggesting a retest of the lows at some point tomorrow, but the buyers also have strength on the recent pullback which tells sellers to wait for buyers to try a few times before they get short.

Top 3 Trades for Tomorrow: 

• UP – Sell the failure (or) buy the breakout
• DOWN – sell the trap & break down (or) buy the failure off the lows
• SIDEWAYS – avoid the middle of the new range, sell resistance levels above it.