Are You Seeing This Reversal? (Am I Crazy?)

Video Length: 00:45:40

Charts are prepped for Wednesday, and I’m seeing lots of clues for a bullish reversal tomorrow morning…

Yes, the markets were bearish into trading-ranges today, but there are a handful of important clues that make it nearly impossible to get short without a strong leg lower for the sellers…

Anytime I see situations like this, I start looking for ways to trap in the sellers so I can get long into their stops. 

Am I crazy for trying this? Let me show you where to look…

E-Mini S&P (ES):

(Click on image to enlarge)

E-Mini Keys to Success:

  • Sellers took control overnight but have yet to retest their major lows, finishing the day in a range.
  • Sellers have tried twice at this point, suggesting that buyers have the upper hand to retest the highs if bears can’t get something running lower very soon.
  • Bulls want to breakout higher for a retest of All-time highs.
  • Bears want to complete the ‘pendulum swing’ back near last Friday’s range.

Best Trades for Tomorrow: 

  • [UP] – 2-try trap to buy (or) nested failure to sell
  • [DOWN] – nested failure to buy (or) 123-breakout to sell
  • [SIDEWAYS] – avoid the range, buy low, sell high with failures.

E-Mini Nasdaq (NQ):

(Click on image to enlarge)

Nasdaq Keys to Success:

  • Bearish into a range with rotation off the low giving buyers the momentum edge.
  • Sellers appear to be struggling to hold price lower, suggesting a run back to Monday’s high.
  • Bulls want to breakout and run back to recent highs
  • Bears want to breakout lower and run down to major support at 12610

Best Trades for Tomorrow:

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

Gold Futures (GC):

(Click on image to enlarge)

Gold Keys to Success:

1 2
View single page >> |

Disclaimer: Join our Free Trading Course. Joseph James, SchoolOfTrade.com and United Business Servicing, Inc. are not registered investment or ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.