E-mini 8 Bull Bars Streak Will Probably End Today

 | Apr 07, 2021 09:30AM ET

E-mini 8 bull bars streak is unusual and therefore unsustainable and climactic.

Since yesterday closed in lower third, today or tomorrow will probably be a bear bar.

Also, today will probably trade below yesterday’s low.

Open of the day will be a magnet late in the day if the E-mini is within 10 points of it.

8 consecutive bull bars means aggressive bulls. They will buy below yesterday’s low and the first 1- to 3-day pullback.

Extreme buy climax, but no sign of major top. Similar to the parabolic rallies in June and October. Both were followed by 10% pullbacks. Traders will continue to buy until there is a strong reversal down.

h2 Overnight E-mini Globex trading on 5-minute chart/h2

Yesterday’s high was a ledge top (5 bars in a tight trading range with identical highs).

Ledge top is a magnet. E-mini should break above it within a few days.

Down 8 points in Globex market so will likely get gap down.

Small gaps usually close in first hour.

Bears want big bear day, which would increase chance that yesterday was start of 2-week selloff.

Today will probably close below the open, but bulls will likely buy first 1- to 3-day pullback.

After 2 big bull days, today will probably not be a big bull trend day.

While it is possible that today will be a big bear day, and reverse Monday’s rally, a trading range day with a close below the open is more likely.

Should have at least one swing up, and one swing down today.

If there is a series of strong trend bars in either direction in the first hour, then could get trend day.

h2 Yesterday’s E-mini setups/h2