Trading the Bounce; When to Trade It, or Fade It

We started today’s session with a strong run higher, but a delay in the next stimulus bill quickly let the air of this balloon and markets quickly turned lower…

That leads us to the big question for tomorrow;  should I trade the bounce, or fade the bounce?  It all depends on momentum, here’s the plan…

E-Mini S&P Buyers Trying to Defend the Dip…

E-Mini S&P is bearish after a 123-Reversal off today’s high;  the session finished with a strong bounce off the lows, telling me that buyers are trying to buy the dip, so my plan is to wait for them to buy the next pullback and sell into their stops.

Crude Oil Sellers Got the 123-Reversal Pattern…

Crude Oil is bearish after buyers failed to hold a spike and channel pullback;  the recent lower-lows tell me to keep focused on selling the high of a new hidden channel using buyer failure patterns.

Gold Buyers Waiting for a Deep Pullback…

Gold is bullish with a Spike & Range pattern;  this tells me to look for buy setups below the range using seller failure patterns, but the key will be momentum of the pullback, telling me which entry setup will work best.