Ready to Reload? Where’s the Best Entry?

Woah, what an amazing day today – but we’re only as good as our next trade, so it’s time to get back to work!

Everything is bearish going into Wednesday’s session, and with such strong moves lower today, I’m looking for sell setups for a retest of the low tomorrow…

The Eminis are in the perfect spot to get short, but Gold needs a deeper pullback.  Here’s my plan for Wednesday…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Bears had a strong run lower to reach the “triangle target” below us.
• Price started trading sideways, tried to run lower but failed and the ‘pendulum swing’ is now being tested on the opposite side. 
• Bears would love to sell this bounce, but this rotation off the low gives buyers a lot of momentum so they need to be careful.

Best Trades for Tomorrow: 

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

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Sellers took it lower on strength today, going three legs down into what appears to be a range before bouncing higher where we expect to see sellers looking for ways back in for a retest of the low tomorrow morning.
• Sellers will look for buyers to get stuck on the next pullback and sell into their stops.
• Buyers need to hold the next pullback if they want any chance at a short-covering rally on Wednesday.

Best Trades for Tomorrow:

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

Gold Futures (GC):

Gold Keys to Success:

• After a bumpy start, sellers took control with a strong run lower back into the range magnet from last week.
• Sellers will be looking for sell setups up around the high of the new bear channel, or breakouts going lower to complete the measured-move
• Buyers don’t have any momentum so they need to hold a pullback and get a 123-Reversal if they want any chance to take control tomorrow morning.

Best Trades for Tomorrow:

• [UP] – bull-trap & buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – 2-try trap (or) 123-breakout to sell
• [SIDEWAYS] – sit on hands, wait to sell the bounces