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Can anything stop these melt-up markets?!

Both the Emini and Nasdaq continued to “melt” higher on low volume today, finishing the session at major resistance levels on the chart…

The bulls clearly have control — but these low volume moves, combined with multiple resistance levels tell me the “easy money” will be the sell-side…

Selling? Isn’t this too bullish? Yes. So we have to pick our spots wisely… I can’t force the trades short, so I’ll be looking for my (2) favorite reversals patterns to trigger the entry. You don’t want to miss these on Wednesday…

And don’t forget Gold – sellers have control after a 2-try reversal off today’s high, and I have my eyes on some easy shorts off the high of a new bear channel…

E-Mini S&P (ES):

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E-Mini Keys to Success:

• Buyers took control into a trading-range this morning and a late afternoon melt-up completed a measured move going into all-time high resistance overhead.
• Buyers have control, but running into measured-move resistance isn’t a great place to buy, so it’s best to either wait for a pullback or look for a breakout going higher.
• Sellers should stay patient; wait for a 2-try failure off the highs or a 123-Reversal going lower.

Best Trades for Tomorrow: 

• UP – buy the 2-try trap (or) sell the 2-try failure
• DOWN – buy the seller failure (or) sell the 123-Reversal
• SIDEWAYS – wait for the new range, then buy support levels below it.

E-Mini Nasdaq (NQ):

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Nasdaq Keys to Success:

• Bulls took control into a trading-range and just complete a breakout into a measured-move resistance zone overhead.
• Buyers have control, but multiple resistance levels overhead tell us to wait for either a deep pullback off the highs, or a breakout to new highs before we can buy more.
• Sellers don’t have any momentum, but they have a great opportunity for shorts off the highs or reversals running back into the range from this morning.

Best Trades for Tomorrow: 

• UP – buy the bull breakout (or) sell the 2-try failure
• DOWN – buy the seller failure (or) sell the 123-Reversal

Gold Futures (GC):

(Click on image to enlarge)

Gold Keys to Success:

• Bulls sent price racing higher into a range to begin the day, but sellers took control and appear to be pushing towards a retest of yesterday’s low.
• Sellers have control and will be looking for shorts up at resistance levels overhead, along with selling breakouts going lower.
• Buyers need to be careful because they don’t have many options until we either bounce off the major lows, or get a strong 123-Reversal going higher.