Sellers Look Trapped, How Do You Trade It?

Video Length: 00:44:58

Wow, what a difference an hour can make!

Sellers took control of the Eminis and Gold to start the session today, but after failing to hold the lows, the bears look trapped with buyers ready to capitalize!

What’s the best way to trade this potential snap higher?

It all boils down to two trades; breakouts and pullbacks.No matter which market you’re trading on Wednesday, keep these trades on your radar!

E-Mini S&P (ES):

(Click on image to enlarge)

E-Mini Keys to Success:

  • Range Market = Failures, Rotation & Breakouts
  • Buyers tried pushing price higher, but sellers got the best of them and took price lower into a range.
  • Sellers are exiting positions after a failed pendulum-swing this afternoon, which is giving buyers a great opportunity to take control for a run back into the range from yesterday and possibly a retest of all-time highs.
  • Buyers can get aggressive if this market starts to accelerate higher, but they need to be patient if we pull back into the range below us.
  • Sellers need to sit on hands and wait for buyers to fail here because they don’t have any momentum and there’s a clear support trend-line coming up from below.

Top 3 Trades for Tomorrow: 

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

E-Mini Nasdaq (NQ):

(Click on image to enlarge)

Nasdaq Keys to Success:

  • Range Market = Failures, Rotation & Breakouts
  • Price is rotating back and forth around the range from yesterday. Buyers took it higher, then sellers took lower, and now we’re expecting a rotation back higher again with a possible retest of major highs.
  • Buyers will be looking for entries at support levels below the range, along with breakouts on strength going higher.
  • Sellers need to be careful and wait for another leg lower to get momentum back on their side again.

Top 3 Trades for Tomorrow: 

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