The bulls were hoping for an outside up month, but failed. I said that whatever happened today, there would probably be disappointment for the bulls because the Emini is at the top of a trading range. The rally over the past week is strong enough so that today’s reversal down will probably be bought within a day or two.
May is now a buy signal bar on the monthly chart because it is a pullback from the April breakout above the top of the 2 year trading range.
See the weekly update for a discussion of the price action on the weekly candlestick chart and for what to expect going into next week.