E-mini Bull Bar Streak On Monthly Chart Should End In September

August was the seventh consecutive bull bar on the monthly chart. This E-mini bull bar streak has only happened twice in the 25-year history of the E-mini. There has never been a streak of 8 months. September should therefore be a bear bar on the monthly chart.

On the monthly cash index chart, there have been 4 streaks of 8 consecutive bull bars in the past 60 years. There has never been a streak of 9 months. Therefore, September or October should be a bear bar on the cash index’s monthly chart.

The monthly E-mini chart closed on its high in a strong bull trend. That makes at least slightly higher prices likely in September. Also, the market tends to rally from Aug. 26 to Sept. 5. Expect more rally.

If there is an early rally, look for a possible reversal down at the end of the month to below the open of the month. This could be the high for the remainder of the year. There are only 4 months left in the year and one will be the high of the year.

On the daily chart, yesterday was an inside day (its high was below Monday’s high and its low was above Monday’s low). It is therefore both a buy and sell signal bar.

Since the bull trend is strong, there are probably buyers not far below yesterday’s low if today were to get there. The bulls will continue to buy every 1- to 3-day pullback, as they have been doing for a year and a half.

Because yesterday did not close on its high and it had a bear body, it is not a strong buy signal bar. However, the trend is strong and the odds continue to favor higher prices.

The daily chart reached the measured move target based on the height of the pandemic crash. It might stall here for a week or so.

Also, there have been 2 legs up from the August 19 low. A rally today would be a third leg up. A third leg up in a tight bull channel is a parabolic wedge. It often attracts profit takers. Therefore, the upside is probably limited to a few days before there is a 2- to 3-day pullback.

h2 E-mini 5-minute chart and what to expect today/h2

E-mini is up 15 points in the overnight Globex session. If might gap up above the August high.

Small gaps typically close before the bar closes. However, if a small gap on the monthly closes, it can do that at any point in the month and not necessarily on the first day.

If there is a gap, there is an increased chance of a trend in either direction. Up is more likely because the bull trend is so strong on all higher time frames.

If there is a bull trend, it could be big because the E-mini might be making a blow-off top on the daily chart.

If there is a bear trend, today could be an inside day because yesterday’s range is small.

Today will probably open around the 4537.00 measured move target on the weekly chart, based on the height of the pandemic crash.

h2 Yesterday’s E-mini setups/h2

Above is the version that I post every day. Because I often get questions about what Daily Setups Encyclopedia members see, today I am including the example below of that version.

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. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day (see Online Course/BTC Daily Setups).

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. These therefore are swing entries.

It is important to understand that most swing setups do not lead to swing trades. As soon as traders are disappointed, many exit. Those who exit prefer to get out with a small profit (scalp), but often have to exit with a small loss.

If the risk is too big for your account, you should wait for trades with less risk or trade an alternative market like the Micro E-mini.

Written By: Al Brooks