This *HEAD-FAKE BREAKOUT* Could Be Biggest Trade of Week!!
Oh boy – FOMC, here we go!!
Markets are range-bound ahead of the big rate announcement tomorrow afternoon, with both sides looking for a breakout…
FOMC is notorious for “head fakes”, and this one could be the biggest trade of the week!!
Emini and Nasdaq are bearish into a range – buyers are looking for a pendulum-swing going higher, and I hope they get, because it smells like a trap!
Crude Oil is bearish into a range – I’m looking for shorts off resistance just above it, but the best trades is this head fake off the lows!!
E-Mini Nasdaq (NQ):
The Nasdaq is bearish into a range, and buyers are trying to complete a pendulum-swing back up to range highs.
Sellers will be looking for shorts off resistance levels above the range, along with breakouts going lower.
Keys to Success:
- Strong Move Lower, Range Pendulum-swing, Bear bias
- Bears want to sell resistance levels above the range, and breakouts below
- Bulls want to buy support below the range, or breakouts higher
E-Mini S&P (ES):
The Emini is bearish with buyers trying to rotate back above today’s range highs.
Sellers will be looking for shorts off resistance above the range, while buyers try for a breakout.
Keys to Success:
- Strong Move down, Range rotation, Bear Bias
- Bears want to sell resistance above the range and breakouts below.
- Bulls want a breakout higher, or buy reversals off the low
Crude Oil Futures (CL):
Crude Oil is bearish into a range, with buyers trying to hold the lows of a multi-day bull channel.
Buyers will be looking for a breakout higher, while sellers will look for ways to short back to the lows.
Keys to Success:
- Strong Move lower, bearish range, larger bull channel.
- Bulls want a breakout higher, or a reversal off yesterday’s low
- Bears want a reversal off the high, or a breakout lower
