Markets are still using the same ranges from earlier this week, but with some strong moves lower today, the focus will be on momentum and how price responds to the moving-average.
And remember, anytime we have a range-bound environment, it’s all ab…
Markets are still using the same ranges from earlier this week, but with some strong moves lower today, the focus will be on momentum and how price responds to the moving-average.
And remember, anytime we have a range-bound environment, it’s all about avoiding the middle and finding the “sweet spot”.
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Crude Oil is bearish with a strong run lower, which tells me to look for selling-opportunities into a second leg down to the ‘pendulum swing’ target from earlier this week.
But don’t forget about the weekly range – reminding me to watch closely to see if the buyers can respond to the moving-average and give us a short-covering rally back into the range on Friday.
E-Mini S&P is bullish, but the strength of this recent spike lower tells me I need to respect the sellers until I can see a reliable time to enter the market long.
Knowing this, I'm going to wait for the sellers to attempt another leg lower, and look for buying opportunities into their stops for a run back up into the range tomorrow morning.
Nasdaq is bearish and running back down to the low of the weekly trading-range, which tells me I want to be looking LONG going back into the range above us.
The challenge, however, is the strength of this move lower, which will most likely give the sellers confidence to attempt a second leg.
Knowing that, I'm going to wait for the bears to commit at the moving-average, and then look for buying opportunities going into their “pain points” with a target back at the opposite side of the triangle.
Gold is bearish with a strong run off today’s high, and when you combine that with the fact that we’re in a range-bound market, the likelihood of a ‘pendulum swing’ is quite good.
Keeping that in mind, I'm trying to sell, and to do that, I'm going to look for buyers to try chasing the market higher and sell into their stops for a..
