Possible island bottom after Trump’s island top
I will update around 6:55 a.m.
Pre-Open market analysis
The Emini continued its reversal up on Friday. If the Emini gaps up this week, it will create an island bottom. While this is bullish, the Emini is still in its 2 month range. In addition, the buy climax on the weekly chart is extreme. There is therefore only a 30% chance of a strong rally from here without 1st pulling back to the weekly moving average.
Because the Emini had a big range last week and this week will probably open in the middle third of that range, this week has an increased chance of being an inside week. Hence, the odds favor the days developing more trading range price action. This is especially true since it is now back in the middle of the May trading range.
Overnight Emini Globex trading
The Emini is up one point in the Globex session. Furthermore, it traded in a narrow range overnight. While there will probably be residual energy up and down, the odds favor increasing trading range price action this week.