Sellers – Watch for This Setup on Thursday!

These markets are standing on the edge of a cliff!

The selloff continued today after a record-breaking CPI Report tossed a grenade into the markets early this morning, and the bears didn’t let up until the closing bell…

With all this bearish momentum, I’ll be looking for opportunities to “short the bounces” on Thursday morning. 

The key, however, will be timing the entries in the right locations.  Keep an eye on these key locations tomorrow…

E-Mini S&P (ES):

E-Mini Keys to Success:

• Today’s record-breaking CPI report sent prices tumbling early in the session and the sellers never let up until the closing bell.
• Sellers will be looking for opportunities sell the bounces off today’s lows using the triple measured-move as a target.
• Buyers have no momentum at this point, so they’ll need to wait for a 123-Reversal

Best Trades for Tomorrow: 

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

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Sellers had control all day today, completing their measured-move and sitting on the 13,000 round number into the closing bell.
• Sellers will be looking for ways to short the bounces off these lows, or trading breakouts running lower tomorrow morning.

Best Trades for Tomorrow:

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

Gold Futures (GC):

Gold Keys to Success:

• Buyers tried holding the lows of the weekly range but sellers were too strong and price finished the day grinding lower on the way to a “double-down” target waiting below.
• Sellers will be looking for ways to get short with retracements off these lows, using the double-down and 1800 round number as their target.

Best Trades for Tomorrow:

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