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We survived the FOMC Announcement this afternoon, and now we shift our focus to one of the most exciting days of the month, ‘Reaction Thursday’…

That’s right – the day after FOMC is usually a day filled with plenty of price-action setups, so I want to make sure you know where to find the best entries and targets to capitalize on the action…

E-Mini S&P (ES):

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E-Mini Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Bullish into a range and possibly spike and channel.
• Buyers have control and will be looking for buying opportunities at support levels below the range, along with breakouts on strength above the range tomorrow morning.
• Sellers need to be patient but will be looking for selling opportunities if the price begins to accelerate as it rotates off the highs.

Top 3 Trades for Tomorrow: 

• UP – buy the 123-breakout (or) sell the 2try Reversal
• DOWN – buy the seller failure (or) sell the 123-reversal
• SIDEWAYS – sit on hands and avoid the middle of the range.

E-Mini Nasdaq (NQ):

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Nasdaq Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• Bullish into a range, but unlike the Emini, lower-highs and a failed pendulum-swing rotation signal that sellers are stronger than we might first assume.
• Buyers have control of momentum, and they’ll be looking for buying opportunities at support levels below the range, as well as breakouts to new highs.
• Sellers do appear to have their hooks in this, but they need to wait for a strong move lower, or a bounce reversal off the highs to get short with confidence.

Top 3 Trades for Tomorrow: 

• UP – buy the 2-Try breakout (or) sell the reversal off highs
• DOWN – buy the seller failure (or) sell the 123-Reversal
• SIDEWAYS – avoid the middle and wait for a breakout

Gold Futures (GC):

(Click on image to enlarge)

Gold Keys to Success:

• Range Market = Failures, Rotation & Breakouts
• A failed pendulum-swing combined with a strong spike higher gives buyers the edge for a possible breakout of this week’s range tomorrow morning, but with this triangle high holding well, it would be wise to keep our eyes on short

Top 3 Trades for Tomorrow: 

• UP – buy the 123-breakout (or) sell the buyer failure
• DOWN – buy the seller failure (or) sell the buyer failure
• SIDEWAYS – wait for new range to form, then buy low, sell high.