Are You Seeing This Reversal? (Am I Crazy?)

Charts are prepped for Wednesday, and I’m seeing lots of clues for a bullish reversal tomorrow morning…

Yes, the markets were bearish into trading-ranges today, but there are a handful of important clues that make it nearly impossible to get short without a strong leg lower for the sellers…

Anytime I see situations like this, I start looking for ways to trap in the sellers so I can get long into their stops. 

Am I crazy for trying this?  Let me show you where to look…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Sellers took control overnight but have yet to retest their major lows, finishing the day in a range.
• Sellers have tried twice at this point, suggesting that buyers have the upper hand to retest the highs if bears can’t get something running lower very soon.
• Bulls want to breakout higher for a retest of All-time highs.
• Bears want to complete the ‘pendulum swing’ back near last Friday’s range.

Best Trades for Tomorrow: 

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

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Bearish into a range with rotation off the low giving buyers the momentum edge.
• Sellers appear to be struggling to hold price lower, suggesting a run back to Monday’s high.
• Bulls want to breakout and run back to recent highs
• Bears want to breakout lower and run down to major support at 12610

Best Trades for Tomorrow:

• [UP] – 123-breakout to buy (or) nested failure to sell
• [DOWN] – nested failure to buy (or) 123-breakout to sell
• [SIDEWAYS] – sit on hands, wait to fade the breakouts

Gold Futures (GC):

Gold Keys to Success:

• Strong move down with a measured-move overshoot into a trading-range.
• This rotation off the low suggests this market wants to go higher.
• Bulls want to reverse the trend and run back to the range around 1735
• Bears want to finish the test of major support at 75.9 and maybe more.

Best Trades for Tomorrow:

• [UP] – Nested failure to sell (or) 123-breakout to buy
• [DOWN] – nested failure to buy (or) 123-breakout to sell
• [SIDEWAYS] – sit on hands, wait to buy low, sell high with failures