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Markets reversed and ran higher on strength today with a beautiful 123-Reversal pattern we discussed in last night’s newsletter…

But what if you missed the pullback to that new channel? Where’s the next best trading opportunity setting-up for Wednesday?

With such strong moves today, I’ll be looking for deep pullbacks for the best trading opportunities tomorrow morning. Here’s where I’m looking for entries…

E-Mini S&P (ES):

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E-Mini Keys to Success:

• Strong move higher for the bulls completes the measured-move and leaves an open-loop price-magnet that buyers will be trying to retest tomorrow morning.
• Bulls Want to buy this deep pullback and run back to the high
• Bears Want to hold this reversal back to the Weekend Gap

Best Setups for Tomorrow: 

• [UP] – nested failure to buy (or) crown reversal to sell the high
• [DOWN] – 2-try trap to sell (or) crown reversal to buy
• [SIDEWAYS] – sit on hands, fade the breakouts

E-Mini Nasdaq (NQ):

(Click on image to enlarge)

Nasdaq Keys to Success:

• Strong move higher completes a large measured-move for the buyers, but the move was so strong today, everyone is waiting for a deep pullback to get in on the pullback
• Bulls Want to buy the pullback to the base of the spike and channel for a retest of the high
• Bears Want a 123-Reversal into hidden channel pullback

Best Setups for Tomorrow:

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

Gold Futures (GC):

(Click on image to enlarge)

Gold Keys to Success:

• Strong move higher for the bulls into a narrow trading-range
• Bulls Want to buy the pullback around support levels below the range
• Bears Want to reverse the trend back to today’s low.

Best Setups for Tomorrow:

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