Don’t Get Long Until You Watch This!

Are you ready to get long on Friday morning?

Not so fast – before you go chasing these markets higher, let’s take a closer look because it appears the “easier money” might be getting short to finish the week…

Why?  Because when you combine this week’s ranges (magnets) with today’s bull breakouts, and some major resistance levels overhead, you have a recipe for short-selling success…

The only challenge is – the bulls have all the momentum.  So I’ll need to be patient for only the best reversal setups tomorrow morning.  Let me show you how to find them…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Strong bull spike to start the day almost fails and collapses back into the weekly range, but buyers are able to hold on for another leg higher to finish the day.
• Bulls want to complete the 4100 round number and measured-move
• Bears want to get short back into today’s range

Best Trades for Tomorrow: 

• [UP] – 2-try trap to buy (or) nested failure to sell
• [DOWN] – nested failure to buy (or) 123-Reversal to sell

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Bull spike to open the session turns sideways into a range, then a bull breakout into the closing bell.
• Bulls want to complete the measured-move on the way back to all-time highs.
• Bears want to reverse this trend back down into the range.

Best Trades for Tomorrow:

• [UP] – 2-try trap to buy (or) nested failure to sell
• [DOWN] – Nested failure to buy (or) 123-Reversal to sell

Gold Futures (GC):

Gold Keys to Success:

• Strong bull breakout of yesterday’s range goes up to complete a measured-move at major resistance around 1756.
• Bulls want to keep this move going to the next resistance level at 1774.1
• Bears want to get short back into the range below.

Best Trades 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 below the range.