Emini Persistent Buying

Market Overview: S&P 500 Emini Futures

The market is forming an Emini persistent buying on the weekly chart. The bulls must create sustained follow-through buying to increase the odds of a measured move. The bears must create strong consecutive bear bars to show they are back in control, something they haven’t been able to do so since the April low.

S&P500 Emini futures

The Weekly S&P 500 Emini chart

• This week’s Emini candlestick was a bull bar closing near its high.
• Last week, we stated the market remains in the sideways to up phase. Traders would see if the bulls could create follow-through buying above the December 6 high, or if the market would stall and form a pullback in the weeks ahead instead.
• The market traded higher, breaking above the 3-week small trading range.
• The bulls have a breakout and follow-through buying above the December 6 high. They want a resumption of the bull trend.
• They want another strong leg up from a double bottom bull flag (May 23 and Jun 23).
• They want a Leg 1 = Leg 2 move, which will take the market to the 6800 area (Leg 1 being the Apr 21 low to the May 19 high).
• They must create sustained follow-through buying to increase the odds of a measured move.
• The bears want a reversal from a higher high major trend reversal.
• They want a failed breakout above the prior all-time high (Dec 6).
• They hope the recent 3-week trading range will be the final flag of the move.
• They must create strong consecutive bear bars to show they are back in control. So far, they haven’t been able to do so since the April low.
• So far, the move up since the April 21 low is in a tight bull channel, indicating strong bullish momentum.
• The buying pressure is stronger (strong consecutive bull bars closing near their highs) than the weaker selling pressure (bear bars with limited follow-through selling).
• The market could still trade at least a little higher.
• Since this week was a bull bar closing near its high, the market could gap up next week. Small gaps usually close early.
• The market is Always In Long.
• Traders will see if the bulls can develop more follow-through buying above the December 6 high.
• Or will the market trade slightly higher but close with long tails or bear bodies in the weeks ahead instead?
• For now, the market remains in the sideways to up phase.

The Daily S&P 500 Emini chart

• The market traded sideways early in the week. The market then broke above the small trading range from midweek onwards with follow-through buying.
• Last week, we stated the market remains in the sideways to up phase. Traders would see if the bulls could create follow-through buying above the December 6 high, or if the market would stall around the December 6 high area, followed by a pullback in the weeks ahead.
• The bulls want the broad bull channel to continue and a measured move (a Leg 1 = Leg 2 move will take the market to the 6800 area – leg 1 being the Apr 21 low to the May 19 high).
• They want the third leg up to form the large wedge pattern with the first two legs being May 19 and July 3 highs.
• They must create sustained follow-through buying to increase the odds of a measured move.
• If there is a pullback, they want the 20-day EMA to act as support.
• The bears want a reversal from a wedge pattern (May 19, Jul 3, and Jul 25).
• They hope the recent sideways trading range will be the final flag of the move.
• If the market trades higher, especially if it is climactic (almost vertical with no overlapping candlesticks), they hope to get a reversal from a buy climax.
• They want a TBTL (Ten Bars, Two Legs) pullback lasting a few weeks.
• They must create consecutive bear bars closing near their lows, trading far below the 20-day EMA to increase the odds of a deeper pullback.
• The move from the April 21 low is in a tight bull channel, indicating strong bullish momentum.
• The buying pressure remains stronger (consecutive bull bars) compared to the weaker selling pressure (bear bars with limited follow-through selling).
• The market could still trade at least a little higher.
• The market is Always In Long.
• For now, traders will see if the bulls can create more follow-through buying following this week’s breakout above the small trading range.
• Or will the market trade slightly higher, but stall and form a pullback instead?

Trading room

Al Brooks and other presenters talk about the detailed Emini price action real-time each day in the BrooksPriceAction.com trading room. We offer a 2 day free trial.

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