{"id":116791,"date":"2021-06-12T01:30:00","date_gmt":"2021-06-12T08:30:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=116791"},"modified":"2021-06-12T01:32:59","modified_gmt":"2021-06-12T08:32:59","slug":"emini-consecutive-closes","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/emini-consecutive-closes\/","title":{"rendered":"Emini consecutive closes above May 7 breakout point"},"content":{"rendered":"<div style=\"max-width: -moz-fit-content\" class=\"wp-block-ub-table-of-contents-block ub_table-of-contents\" id=\"ub_table-of-contents-f9369948-7f7d-46c2-864c-85b67282c52a\" data-linktodivider=\"false\" data-showtext=\"show\" data-hidetext=\"hide\" data-scrolltype=\"auto\" data-enablesmoothscroll=\"false\" data-initiallyhideonmobile=\"false\" data-initiallyshow=\"true\"><div class=\"ub_table-of-contents-header-container\" style=\"\">\n\t\t\t<div class=\"ub_table-of-contents-header\" style=\"text-align: left; \">\n\t\t\t\t<div class=\"ub_table-of-contents-title\" style=\"\">Weekend report table of contents  <\/div>\n\t\t\t\t<div class=\"ub_table-of-contents-header-toggle\">\n\t\t\t<div class=\"ub_table-of-contents-toggle\" style=\"\">\n\t\t\t\u00a0[<a class=\"ub_table-of-contents-toggle-link\" href=\"#\" style=\"\">hide<\/a>]\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div><div class=\"ub_table-of-contents-extra-container\" style=\"\">\n\t\t\t<div class=\"ub_table-of-contents-container ub_table-of-contents-1-column \">\n\t\t\t\t<ul style=\"\"><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/es\/analysis\/emini-consecutive-closes\/#0-market-overview-weekend-market-analysis\" style=\"\">Market Overview: Weekend Market Analysis<\/a><\/li><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/es\/analysis\/emini-consecutive-closes\/#1-eurusd-forex-market-\" style=\"\">EURUSD Forex market<\/a><ul><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/es\/analysis\/emini-consecutive-closes\/#2-the-eurusd-weekly-chart\" style=\"\">The EURUSD weekly chart<\/a><\/li><\/ul><\/li><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/es\/analysis\/emini-consecutive-closes\/#3-sampp500-emini-futures\" style=\"\">S&amp;P500 Emini futures<\/a><ul><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/es\/analysis\/emini-consecutive-closes\/#4-the-weekly-sampp500-emini-futures-chart\" style=\"\">The Weekly S&amp;P500 Emini futures chart<\/a><\/li><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/es\/analysis\/emini-consecutive-closes\/#5-the-daily-sampp500-emini-futures-chart\" style=\"\">The Daily S&amp;P500 Emini futures chart<\/a><\/li><\/ul><\/li><\/ul>\n\t\t\t<\/div>\n\t\t<\/div><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"0-market-overview-weekend-market-analysis\">Market Overview: Weekend Market Analysis<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>SP500 Emini<\/strong> futures market had consecutive closes above the May 7 breakout point this week on the daily chart. Emini consecutive closes increase the chance of a successful breakout. The bulls will need bigger bull bars, and more bull bars if the breakout is to reach a 200-point measured move up from the 2-month trading range.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>EURUSD <\/strong>Forex weekly chart is turning down from a lower high double top with the January high. However, the reversal will probably only last a couple weeks before the EURUSD goes sideways again.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"1-eurusd-forex-market-\">EURUSD Forex market <\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"2-the-eurusd-weekly-chart\">The EURUSD <em>weekly<\/em> chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/EURUSD-Forex-weekly-candlestick-chart-has-double-top-lower-high-major-trend-reversal-but-in-trading-range.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/EURUSD-Forex-weekly-candlestick-chart-has-double-top-lower-high-major-trend-reversal-but-in-trading-range-680x383.png\" alt=\"EURUSD Forex weekly candlestick chart has double top lower high major trend reversal but in trading range\" class=\"wp-image-116984\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/EURUSD-Forex-weekly-candlestick-chart-has-double-top-lower-high-major-trend-reversal-but-in-trading-range-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/EURUSD-Forex-weekly-candlestick-chart-has-double-top-lower-high-major-trend-reversal-but-in-trading-range-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/EURUSD-Forex-weekly-candlestick-chart-has-double-top-lower-high-major-trend-reversal-but-in-trading-range-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/EURUSD-Forex-weekly-candlestick-chart-has-double-top-lower-high-major-trend-reversal-but-in-trading-range-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/EURUSD-Forex-weekly-candlestick-chart-has-double-top-lower-high-major-trend-reversal-but-in-trading-range.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>Nested trading ranges. There is a 4-week tight trading range (200 pips tall) near the top of an 11-month trading range (700 pips tall). That range is near the top of a 7-year trading range (2,200 pips tall).<\/li><li>Each of the 3 trading ranges is a Breakout Mode pattern. That means there is about a 50% chance of a bull or bear breakout, and a measured move up or down.<\/li><li>As uniformly bullish as all of the TV experts are, there is no breakout until there is a clear breakout.<\/li><li>Markets have inertia and resist change. Continued sideways is more likely than the start of a strong trend. Therefore this reversal down will probably only last a week or so, before the EURUSD goes sideways again.<\/li><li>While the bulls might have a slight advantage, because of last year&#8217;s strong rally from a higher low (above the 2017 low), the EURUSD could not be going sideways if the bulls had a big advantage.<\/li><li>It is almost as likely that the 200- or 700-pip breakout will be down, as it is that it will be up.<\/li><li>To conclude that a breakout is likely to be successful, traders want consecutive closes above or below the range. <\/li><li>The bigger the breakout bars, the more likely the breakout will succeed.<\/li><li>The bulls want the 2-month rally to break strongly above the February 2018 high, which is the top of the 7-year range.<\/li><li>The bears want a reversal down. This past week was a bear bar that closed near its low, so it might be the start of a reversal down. Traders expect at least slightly lower prices next week.<\/li><li>This week closed just above last week&#8217;s low, and did not have a big bear body. It therefore is not yet a strong reversal down.<\/li><li>If down, how far down? The 1<sup>st<\/sup> target is the bottom of the 10-month trading range at around 1.16, and the March 31 or November 4 lows.<\/li><li>If the EURUSD were to break strongly below that, traders would then look for a test of the bottom of the 7-year trading range, which is last year&#8217;s low below 1.07. <\/li><li>It is more likely that it will bounce for at least a couple weeks, if it falls to the bottom of the 11-month range this summer.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"3-sampp500-emini-futures\">S&amp;P500 Emini futures<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4-the-weekly-sampp500-emini-futures-chart\">The <em>Weekly<\/em> S&amp;P500 Emini futures chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-weekly-candlestick-chart-hhas-weak-breakout-above-May-7-high.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-weekly-candlestick-chart-hhas-weak-breakout-above-May-7-high-680x383.png\" alt=\"Emini weekly candlestick chart hhas weak breakout above May 7 high\" class=\"wp-image-116985\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-weekly-candlestick-chart-hhas-weak-breakout-above-May-7-high-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-weekly-candlestick-chart-hhas-weak-breakout-above-May-7-high-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-weekly-candlestick-chart-hhas-weak-breakout-above-May-7-high-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-weekly-candlestick-chart-hhas-weak-breakout-above-May-7-high-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-weekly-candlestick-chart-hhas-weak-breakout-above-May-7-high.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>Small breakout above the measured move target from the March 23, 2020 low to the June 5, 2020 high. <\/li><li>This week broke above, and closed above the May 7 top of the 2-month trading range, but the breakout so far has been small.<\/li><li>This rally has lasted more than 60 weeks, and a Small Pullback Bull Trend usually begins to evolve into a trading range after about 60 weeks.<\/li><li>This increases the chance of a reversal within the next month or two. <\/li><li>A Small Pullback Bull Trend ends with a big pullback. The pullback will be bigger, and last longer than any prior pullback in the trend. <\/li><li>The biggest pullback was the September\/October pullback, which fell 10%. <\/li><li>Therefore, when the trend ends, the pullback should be more than 10%, and last longer than 2 months.<\/li><li>While the Emini has been in a tight trading range for April and May, the pullback has only been about 4%. Therefore, the Small Pullback Bull Trend is still intact. <\/li><li>Traders continue to expect higher prices, but know that a reversal down is likely to come soon.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"5-the-daily-sampp500-emini-futures-chart\">The <em>Daily<\/em> S&amp;P500 Emini futures chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-daily-candlestick-chart-has-weak-breakout-above-May-7-high.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-daily-candlestick-chart-has-weak-breakout-above-May-7-high-680x383.png\" alt=\"Emini daily candlestick chart has weak breakout above May 7 high. Emini consecutive closes.\" class=\"wp-image-116986\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-daily-candlestick-chart-has-weak-breakout-above-May-7-high-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-daily-candlestick-chart-has-weak-breakout-above-May-7-high-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-daily-candlestick-chart-has-weak-breakout-above-May-7-high-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-daily-candlestick-chart-has-weak-breakout-above-May-7-high-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-daily-candlestick-chart-has-weak-breakout-above-May-7-high.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>Thursday was a bull bar that closed above the May 7 high. It was therefore a breakout above the range. <\/li><li>Friday was the 2<sup>nd<\/sup> consecutive bull bar that closed above the May 7 high. Traders see it as confirmation of the breakout, and it increases the chance of higher prices.<\/li><li>The breakout at this point is weak, because both bars were small, and barely closed above the May 7 breakout point. The bulls need bigger bars or several more small bars, to convince traders that the trading range is ending, and the yearlong bull trend is resuming.<\/li><li>The bigger the bull bars, and the more they close on their highs, the more likely the rally will reach a 200-point measured move above the May 7 high. <\/li><li>Friday was a bull inside bar in a bull trend. It is therefore a High 1 bull flag buy signal bar. <\/li><li>The odds favor at least slightly higher prices, but unless there is a Bull Surprise breakout, the rally will probably not reach a 200-point measured move target.<\/li><li>The rally is in a wedge bull channel. A reversal down would be from a wedge rally to a higher high double top with the May 7 high. <\/li><li>That is a common reversal pattern, but the wedge is not clear, and there is no sell signal bar. The odds are against a major reversal without a good sell signal bar, or a big Bear Surprise Bar.<\/li><li>A reversal would also be a higher high major trend reversal, and an expanding triangle top, which began with the April 16 or April 29 highs.<\/li><li>Even a strong sell setup (this one is weak) in a bull trend, only has a 40% chance of leading to a trend reversal (into bear trend).<\/li><li>Most of the time, a selloff from a top will be only a minor reversal. That means that it will be a pullback in the bull trend (bull flag), or lead to a trading range, just like every other reversal since March 2020.<\/li><li>Until there is a strong reversal down, traders will continue to expect higher prices. They will bet that every reversal down will fail within a few bars.<\/li><li>Once a correction is clearly underway, it is usually about half over.<\/li><li>Traders will continue to expect higher prices until there is a strong reversal down.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"6-trading-room\">Trading Room<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Traders can see the end of the day <a rel=\"noreferrer noopener\" href=\"http:\/\/www.brookspriceaction.com\/profile.php?mode=profil&amp;sub=profile_prefer&amp;mod=0\" target=\"_blank\">bar-by-bar price action report by signing up<\/a> for free at BrooksPriceAction.com. I talk about the detailed Emini price action real-time throughout the day in the BrooksPriceAction.com <a rel=\"noreferrer noopener\" class=\"rank-math-link\" href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\" target=\"_blank\">trading room<\/a>. We offer a <a rel=\"noreferrer noopener\" href=\"http:\/\/www.brookspriceaction.com\/portal.php?page=11\" target=\"_blank\">2 day free trial<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"7-charts-use-pacific-time\">Charts use Pacific Time<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">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 <a rel=\"noreferrer noopener\" class=\"rank-math-link\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/market-update\/\" target=\"_blank\">Market Update<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market Overview: Weekend Market Analysis The SP500 Emini futures market had consecutive closes above the May 7 breakout point this week on the daily chart. Emini consecutive closes increase the chance of a successful breakout. The bulls will need bigger bull bars, and more bull bars if the breakout is to reach a 200-point measured [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":116985,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[136],"tags":[333,343,281,60],"class_list":["post-116791","post","type-post","status-publish","format-standard","has-post-thumbnail","category-analysis","tag-breakout","tag-consecutive-closes","tag-eurusd-forex","tag-sp-emini","entry","override","shadow"],"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/06\/Emini-weekly-candlestick-chart-hhas-weak-breakout-above-May-7-high.png","author_info":{"display_name":"Al","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/albrooks\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/116791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=116791"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/116791\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/116985"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=116791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=116791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=116791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}