Who Wins the War for Wednesday? (Range Trading)

Charts are all prepped for Wednesday…

We have a bunch of economic news and a handful of sideways ranges to play with tomorrow morning. 

Should be a great trading day, but there’s just one problem; momentum…

Everything is bearish going into the closing bell today, but the ranges are above us on the chart.  I want to get long going back into those ranges, but this momentum is really strong for the bears…

So I’m going to stay patient, let sellers get in trouble before I commit to the long side.  Here’s a breakdown of what I’m looking for…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Buyers failed to hold the highs, price rolled over and ran back into Monday’s range
• bears want to sell the next pullback and complete the retest of 3875 lows
• Bears need to reverse this trend before they can get in safely.

Best Trades for Tomorrow: 

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] –  buyer failure to sell (or) crown reversal to buy
• [SIDEWAYS] – sit on hands, wait to sell the bounce higher

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Bullish into a range.  Buyers failed the breakout to new highs, now they will try to buy it below the range for a rotation back up to the high.
• Bulls want to go back into the range overhead
• Bears want to hold this next pullback for a run back to Monday’s low.

Best Trades for Tomorrow:

• [UP] – seller failure to buy (or) 123-breakout to sell
• [DOWN] – 123-breakout to sell (or) nested seller failure to buy
• [SIDEWAYS] – sit on hands, wait to fade the breakouts

Gold Futures (GC):

Gold Keys to Success:

• Bears have control, but trading under the weekly range says to focus on buying back up into the range, or wait for a strong bear breakout lower.
• Bulls want to go back into the range above, possibly up to the Weekend Gap  overhead
• Bears want to hold this move lower and make a run down to 1700

Best Trades for Tomorrow:

• [UP] – nested failure to buy (or) 123-breakout to sell
• [DOWN] – nested failure to buy (or) 123-breakout to sell
• [SIDEWAYS] – sit on hands, wait to sell above range highs.