Is this ‘Runaway’ Market for Real? (OPEX Strategy)

OPEX Friday is just a few hours away, let’s make it count!

Everything is bullish going into Friday morning, with plenty of setups on our radar…

Emini is bullish into a range, so I’ll be looking to “trade the rotation”…

Nasdaq is bullish too, and a wedge pattern tells us we may have a “Runaway” market on our hands tomorrow…

Crude Oil is bullish with a strong pop higher – I’ll be looking for entries off the low of a new channel, but I’d love to see a reversal instead…

Remember – Friday’s after often a smaller “window” of opportunity, so make sure you’re ready for these setups tomorrow morning…

E-Mini S&P (ES):

E-Mini Keys to Success:

After a wild session, the Emini buyers finished the day with control of momentum into a trading-range just a few points below the all-time highs.

Buyers will be looking for entries at support levels below the range, along with breakouts going higher. 

Sellers should be careful with such strong momentum, but they can look for shorts off major highs using a reversal, or wait for the turn and trade the rotation going back to support levels below the range.

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

Bulls have control on the Nasdaq and appear to be trading inside a large wedge pattern.

Wedges are important clues because they tell buyers to look for entries long off the lows while there’s still enough space, but once the wedge narrows, buyers should wait for a correction to “free up” space to buy it again.

Sellers need to stay patient – wedges often turn into runaway markets so we don’t want to fight that momentum until we start seeing signs of exhaustion and a turn in momentum.

Crude Oil Futures (CL):

Crude Oil Keys to Success:

Buyers have control after a breakout from today’s trading-range completed a measured-move target.

The most recent push higher was rather strong, suggesting we’ll see a retest of the high at some point tomorrow.

Buyers will be looking for ways to get long off the lows of this new channel or buying breakouts going higher to complete the possible wedge target up around Friday’s close.

Sellers should stay patient because this recent move was so strong, but since yesterday’s move down was so strong, they may get their opportunity to grab control for a run lower.  If they do, a quick short off the high of a new bear channel would be ideal.