Yesterday was a strong reversal up after Wednesday’s big bear day. I said yesterday before the open that the bears would not get immediate follow-through selling because of the strong bull trends on the daily and weekly charts. A strong bull trend usually has to go sideways before it will go down. The Emini is now sideways. This might continue up to the July 31 FOMC announcement.
Furthermore, I said that the odds favored at least a bounce over the next few days. Yesterday is probably the start. It is a buy signal bar for today. But after 3 strong bear days and a parabolic wedge rally, there still might be a 2nd leg sideways to down over the next week.
Overnight Emini Globex Trading
The Emini is up 6 points in the Globex session. Today might test Wednesday’s sell climax high. Wednesday was a Bear Surprise Day on the daily chart in a bull trend. While a 2nd day sideways to down is likely, there is often a test of the top of the bear bar before that 2nd leg begins. Consequently, there is a magnet at Wednesday’s high of 3009.25.
Unless the bulls break above Monday’s all-time high, the odds still favor at least a small 2nd leg sideways to down over the next 2 weeks.
Emini S&P 500
Here are several reasonable stop entry setups from yesterday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely also show limit order entries and entries on the close of bars. Buyers of the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day.
My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter.
Emini Buy Signal Bar After Pullback Below 3000
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