Emini Possible Outside Down Week In 4 Month Trading Range
Al Brooks | May 24, 2018 09:15AM ET
While the Emini gapped down yesterday, it reversed up and did not trade below last week’s low. The rally from the May 3 low was strong enough so that there is a 60% chance that the Emini will make a new all-time high before falling below the February low.
Yesterday is a buy signal bar on the daily chart. Since it is a big bar, the risk is greater and the probability of a big bull trend today is less. However, after the strong reversal up yesterday, today will probably not be a bear trend day.
h3 Overnight Emini Globex trading/h3
Yesterday’s rally was a wedge. Today is therefore likely to have a pullback that has 2 legs. It might test the 2721 beginning of the wedge bull channel. A wedge typically transitions into a trading range.
The Emini is currently down 4 points in the Globex market. The odds are that it will form a trading range in the 1st 2 hours. Less likely, the bulls will get a strong break above the wedge top or the bears will reverse far below the 2721 bottom of the wedge. Since every day for the past 2 weeks has been mostly sideways, that is what is likely again today.
h2 Yesterday’s setups/h2Here are several reasonable stop entry setups from yesterday. I sometimes also show limit order entries and entries on the close of bars.
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