Emini and Forex Trading Update:
Tuesday April 13, 2021
Pre-Open market analysis of daily chart
- Yesterday was 12th consecutive bull day and the 12th day in a bull micro channel.
- The last time there were 12 or more consecutive bull days was in February 2011. That streak ended after 15 days. It was followed by a 9% correction that lasted 2 months. After a minor new high, there was a 24% correction into October.
- 3 legs up in tight bull channel over past 3 weeks, so parabolic wedge buy climax.
- Even though very strong bull trend, the buy climax is extreme. There is an increased chance of a reversal down coming at any time. Will it be as big as in 2011? There is a 50% chance of it being 10% and a 30% chance of it being 20%.
- Buy climaxes can last much longer than what might seem reasonable. While unlikely, this one could continue much higher.
- But it is already a once-a-decade type of buy climax. Therefore, even if it continues up, it will probably not go much higher before there is profit taking for at least a couple weeks.
- As I said over the weekend, the Emini might soon put in the high for the next many months and possibly for the year.
IMPORTANT: Reduced Emini and Forex reports
- Due to need to reduce workload, Al will only be writing the Emini and Forex daily reports on the days he is active in trading room. This will usually be 3 times a week: Monday, Wednesday, and Friday.
- The previous day’s Emini setups chart will be posted on those days with no report.
- See Trading Room calendar in right-hand-side sidebar for when reports are to be issued.
- Apologies for short notice.
Yesterday’s Emini setups
See the weekly update for a discussion of the price action on the weekly chart and for what to expect going into next week.
Trading Room
Traders can see the end of the day bar-by-bar price action report by signing up for free at BrooksPriceAction.com. I talk about the detailed S&P Emini futures price action real-time throughout the day in the BrooksPriceAction.com trading room. We offer a 2 day free trial.
Charts use Pacific Time
When I mention time, it is USA Pacific Time (the Emini day session opens at 6:30 am PT, and closes at 1:15 pm PT). You can read background information on the intraday market reports on the Market Update page.