I left a few minutes early today. The Emini had big swings up and down, but got back above the 60 minute moving average and above yesterday’s high at the end of the day, but closed just below.
I left a few minutes early today. The Emini had big swings up and down, but got back above the 60 minute moving average and above yesterday’s high at the end of the day, but closed just below.

Yesterday was a buy signal bar on the daily chart for a higher low major trend reversal. The buy triggered early today, but the Emini had a deep pullback. It got back above yesterday’s high at the end of the day, but pulled back in the final hour. If tomorrow gaps up, there would be a 2 day island bottom, and the bulls would look for a measured move up to around 1880 – 1900, based on the height of the 2 day trading range.

If instead tomorrow reverses down strongly and it does not close the gap below Friday’s low, the Emini would then try for a break below the January low. As I wrote over the weekend, a test up is more likely, but the odds favor a bear breakout below the January low at some point in the next several weeks.

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.

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