Buy the Dip? Or Moments Before the Collapse!?

I’m excited for Wednesday, lots of great setups on my radar…

With the Eminis rolling over today, I’ll be looking to short the bounces at two key resistance zones overhead tomorrow morning…

Gold is still bullish, but the way price rotated off today’s high tells me the best entries will be short until the buyers can prove themselves…

And speaking of proving themselves – there’s so much OPEN SPACE below us, the buyers need to step-up or these markets will collapse!

E-Mini S&P (ES):

E-Mini Keys to Success:

• After a strong breakout higher in the pre-market, sellers quickly took control and ran price three legs lower, almost completing a full ‘pendulum swing’ to the opposite side of the range.
• Bears have all the momentum, so they’ll be looking to sell retracements off the lows, looking for a target down at 4100 below.
• Also important to remember that large, 3-leg moves often go sideways the following day, so keep your eyes open for a range down here.

Best Trades for Tomorrow: 

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – 2-try trap to sell
• [SIDEWAYS] – wait for the new range, then sell buyer failures above the highs.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Buyers took control in the overnight, but they lost it and price collapsed running three legs lower, almost completing a full ‘pendulum swing’
• Bears have all the control right now, so they’ll be looking for shorts up at resistance levels overhead.

Best Trades for Tomorrow:

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – 2-try trap to sell (or) bounce 123-Reversal to buy
• [SIDEWAYS] – wait for the range, then sell above the highs with buyer failures

Gold Futures (GC):

Gold Keys to Success:

• The strong move higher on Monday turned sideways today and buyers have been picking off the pullbacks trying to spark another rally higher but they just haven’t been able to get the highs to hold.
• With momentum rotating strong off the highs, sellers will be on attack at resistance levels overhead so buyers will need to be careful unless they can get a breakout running higher.

Best Trades for Tomorrow:

• [UP] – buyer failure to sell (or) 123-breakout to buy
• [DOWN] – 2-try trap to sell (or) bounce 123-Reversal to buy
• [SIDEWAYS] – avoid the middle, wait to buy low, sell high with failures.