Trading A Runaway Market
These “runaway markets” were fun to watch today, but now after the dust settles we find most of our markets either over-bought or over-sold going into Thursday morning…
Knowing this, any time a market runs this far in one session, I know exactly what to prepare for the following day, but the big question is – are you ready?
Crude Oil is bearish with a strong move lower in today’s session, which tells me the bears have control, and I should be looking for sell setups at key resistance levels…
And I have my eyes on (1) one specific area on the chart, where the high of the hidden-channel and the battle-zone combine together.
E-Mini S&P Buyers Waiting for a Deep Pullback…
E-Mini S&P is bullish with a strong move higher, all the way up to new all-time highs, which tells me to buy pullbacks to key support levels tomorrow morning…
But the biggest clue is the spike & channel, which tells me to anticipate (and don’t be fooled by) a sharp pullback into the battle-zone.
Nasdaq Trying to Get that 9,000 Round Number…
Nasdaq is bullish with a strong rally higher, finishing the session just a few points below the next big round number at 9000…
And all this bullishness tells me to buy pullbacks to key support levels on Thursday, and I can see the perfect spot where the low of a new hidden-channel and a previous high come together.
Gold Fills the Gap and Trades Sideways…
Gold is bearish with a strong “runaway” move going lower, which finished in a narrow trading-range, telling me to sell retracements at key resistance levels…
And I have my eyes on the confluence level around 1575 where the battle-zone and hidden-channel intersect.
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