Posted 9:23 am PST.
Yesterday had a 3.5 point range, making it one of the smallest days of the past few years. It formed a sell signal on the daily chart for a final flag trend reversal. Like most trend reversals, the risk is small, but this means that the probability is small as well. The market is still just below the top of the channel on the weekly chart, which is a magnet.
Today is a trading range day so far. The market reversed up again from below yesterday’s low, but with very two-sided trading. This is a nine bar bull microchannel so there are probably buyers below, but there is no strong breakout in either direction and the probability of a swing trade up or down is therefore low. Traders are buying low, selling high, and scalping while they wait for a breakout in either direction.
Traders can see the end of the day bar-by-bar report by signing up for free at BrooksPriceAction.com. I talk about the detailed Emini price action real-time throughout the day in the BrooksPriceAction.com trading room, and a 2 day free trial is available.
I sometimes refer to bar numbers (there are 81 five minute bars each day) instead of times on the 5 minute. When I mention time, it is USA Pacific Standard time (the market opens at 6:30 am PST, and closes at 1:15 pm PST). Background information on this report can be read on the Intraday Market Update page.
