Trading the Gap Fill Failure
The markets started the new week with a bullish GAP at the open, followed by a strong run higher, which are two big clues playing into my plan for tomorrow morning…
Markets are bullish, there’s no doubt about that, but they went too far, and we’re waiting for a pullback to buy more, but the real clue is that GAP at the open…
Because when we get the pullback, we can assume that sellers will be trying to fill that GAP, and experienced traders will be waiting to trade into the “Gap Fill Failure” – Are you ready for this?
Crude Oil is Waiting for a Pullback (But to Where?)
Crude Oil is bullish with three legs higher in today’s session, which tells me that I need to wait for a lower price before I can buy more…
Knowing this, I’m looking for key support levels to structure my trade, and I can see the low of a new Hidden Channel waiting patiently for the pullback…
E-Mini S&P Looks Like a Range-Bound Market…
E-Mini S&P is bullish into the combination of a trading-range and a Spike & Channel, both of which tell me to look for buy set-ups after a deep pullback…
And that deep pullback will likely fool the counter-trend sellers into thinking the GAP will get filled, at which point we can buy into their stop-losses for what should be an easy short-covering rally back to re-test the high.
Nasdaq Has Multiple Battle Zones…
Nasdaq is bullish into a Spike & Channel, which tells me to look for buy set-ups near the “base” of the channel tomorrow morning…
Knowing this, a deep pullback will swing the momentum for the sellers, and as the bears try filling that GAP over the weekend, professionals will be waiting to buy using the GAP fill failure.
Gold Sellers Look Exhausted (Safe to Buy?)
Gold is bearish, but after two attempts to re-test today’s low, the sellers appear to be struggling, and look likely to head back up into the range waiting above…
But before I look for the entry going long, I need to wait for them to sell off the next resistance level so I can buy into their stops for a short-covering rally going higher.
Euro Looks Like It Wants to Go Sideways (Then What?)
Euro is bearish and (just like Gold) struggling to re-test it’s low, which appears to be setting-up for a range-bound market on Tuesday…
Knowing this, the bear momentum into the range tells me to focus on buyer-failures to sell off the high of the range tomorrow morning.
“Motivation is what gets you started. Habit is what keeps you going.”
