Trade the FOMC “Reaction” with these Setups

Hope you saved some bullets for tomorrow!

With FOMC behind us, and big moves on the charts today, we have big  opportunities on our radar for ‘Reaction Thursday’…

I’d love to grab a reversal on the Emini, trade a spike & channel continuation on Nasdaq, and I’m looking at four potential setups on Gold… it’s gonna be a busy day!

E-Mini S&P (ES):

E-Mini Keys to Success:

• Emini traded sideways inside a narrow range until the FOMC Announcement sent price tumbling lower, but price shot back higher after sellers failed their two attempts to retest the lows.
• The bullish momentum coming off the lows, combined with the support trend-line from the higher-low makes it very hard to get short until we see a firm run lower.
• In the meantime, I’ll be looking to get long off the lows of the channel, support trend-line, and major lows.

Best Trades for Tomorrow: 

• Range = Failures, Rotation, Breakouts
• Buy the 2-try failure off support trend-line lows
• Buy the 2-try failure off major lows at 90.25
• Buy the 123-Reversal going higher.
• Sell the 2-try failure after retesting major highs
• Sell the 123-breakout going lower.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Bears took control early in the session and the FOMC Announcement sent prices racing lower with a spike and channel.
• I would normally be selling the “base” of that spike and channel, but we see a strong spike through that area, leaving an open-loop for the bulls.
• I’ll be looking to get short going back to the lows of the spike and channel, but that open-loop for the bulls tells me I need to wait for the buyers to try a few times before I trigger the entry.

Best Trades for Tomorrow:

• Trend = Continuations, Reversals, watch for new Ranges
• Sell the 2-try failure on the way back to lows
• Sell the buyer failure bounce off the lows.
• Sell the 123-breakout going lower.
• Buy the 2-try failure for the sellers
• Buy the bounce reversal off major lows
• Buy the 123reversal off new channel lows.

Gold Futures (GC):

Gold Keys to Success:

• After spending most of the morning trading sideways inside a narrow range, sellers took it lower on strength after FOMC and completed a measured-move spike going lower.
• Sellers have control, but nobody wants to sell this low, so the only way we’ll be able to get short is with a DEEP pullback, a range, or a grind continuation going lower.
• Buyers also have a challenge because the momentum is so strong.  They’ll need to wait for sellers to fail a few times before they get long, or wait for proof of a reversal off these lows.

Best Trades for Tomorrow:

• Trend = Continuations, Reversals, and watch for new ranges
• Sell the DEEP pullback with a 2-try failure
• Sell above a new trading-range
• Sell bull traps above the highs of a grind-lower continuation.
• Buy the 2-try failure off the lows
• Buy the V-bottom reversal
• Buy the 123-Reversal