Short the Bounces on Thursday

The markets sold off this afternoon and finished the session right near their lows, which gives the bears control of momentum going into Thursday…

With bears in control, I’ll be looking for ways to “short the bounces” up around key resistance levels I’ve identified on the charts tonight…

The only variable I see for tomorrow are the ranges from earlier today.  Ranges act like price-magnets, so I’ll be watching the strength of these bounces to tell me which specific entry setup to use. 

E-Mini S&P (ES):

E-Mini Keys to Success:

• Sellers broke free of today’s trading-range with a strong run lower which quickly pulled-back and retested the lows. 
• Sellers have control, but we need to see higher prices to sell, or a breakout lower.
• Bears want to sell retracements off today’s low.
• Bulls need a strong reversal to retest the all-time highs overhead.

Best Trades for Tomorrow: 

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] –short the bounces/retracements with buyer failures at resistance levels
• [SIDEWAYS] – wait for the range, sell above the high with buyer failures

E-Mini Nasdaq (NQ):

Nasdaq Keys to Success:

• Strong bear reversal off the highs finishes the day with a bear wedge just before completing a measured-move objective.
• Bears want to sell the bounces/retracements at resistance levels overhead
• Bulls want to reverse the trend for a retest of all-time highs

Best Trades for Tomorrow:

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – wait for the bounce and sell buyer failures back to the low
• [SIDEWAYS] – sell above the range with buyer failure patterns.

Gold Futures (GC):

Gold Keys to Success:

• Sellers get a breakout of this morning’s trading-range and run straight into another range now with a bear momentum bias.
• Bears want to sell at resistance levels above the range
• Bulls want to reverse this trend back into the range above us.

Best Trades for Tomorrow:

• [UP] – buyer failure to sell (or) 123-Reversal to buy
• [DOWN] – Wait for the bounce off the lows and sell into buyer failures
• [SIDEWAYS] – sit on hands, wait to sell resistance levels above the range with buyer failures