Don’t Miss this Reversal on Wednesday!

Am I crazy to be looking short?

Yes, the Eminis are bullish, but today’s move higher came on low volume after Powell’s testimony, we have major resistance overhead, and two ranges acting like magnets below us! 

Gold is a perfect situation to get short too; we have pendulum-swing and expanding triangle resistance just begging to be sold overhead.

At this point, it all comes down to the entry signal.  Here’s what I’m looking for…

E-Mini S&P (ES):

E-Mini Keys to Success:

• We spent most of the day inside a range before we saw a strong bull breakout into another range, then another breakout to complete a measured-move as Jerome Powell began his testimony.
• At this point, we don’t have much space before we run into multiple resistance levels overhead, telling me to either look for reversals to get short, or wait for a strong spike higher to confirm another leg into the all-time highs.

Top 3 Trades for Tomorrow: 

1. Buy the 2-try trap (or) 123-breakout to new highs
2. Sell the Buyer failure back into the range
3. Sell the 123-Reversal for a large move lower

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• We spent most of the morning trading sideways until a lunch session breakout sent prices racing higher as Jerome Powell spoke on Capitol Hill.
• We’re bullish, but major resistance levels make it hard to get long up there, so I’ll be waiting for a trading-range to develop, a bull breakout to confirm another leg, or a short off the high.

Top 3 Trades for Tomorrow: 

1. Buy the bull breakout to new highs
2. Sell the buyer failure going back into the range below us
3. Sell the 123-Reversal going lower

Gold Futures (GC):

Gold Keys to Success:

• Bears have control into a range with a pendulum-swing trying to complete higher.
• With sellers in control, I’ll be looking to sell the pendulum-swing resistance above us, or a breakout below us.

Top 3 Trades for Tomorrow: 

1. Sell the pendulum-swing resistance with a buyer failure
2. Sell the Breakout going lower
3. Buy the 2-Try breakout if it exceeds the pendulum-swing