{"id":166236,"date":"2022-12-11T01:30:00","date_gmt":"2022-12-11T09:30:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=166236"},"modified":"2023-01-15T01:29:28","modified_gmt":"2023-01-15T09:29:28","slug":"emini-start-of-pullback","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/emini-start-of-pullback\/","title":{"rendered":"Emini Start of Pullback from Wedge Bear Flag?"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Market Overview: S&amp;P 500 Emini Futures<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;<strong>S&amp;P 500 Emini<\/strong>&nbsp;futures bears hope that this week is the Emini start of pullback from the wedge bear flag. The weekly candlestick closed below last week&#8217;s low and the 20-week exponential moving average. They need to create a follow-through bear bar to increase the odds of lower prices. The bulls hope that this week was simply a pullback and wants a retest of the December 1 high.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">S&amp;P500 Emini futures<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Weekly<\/em> S&amp;P 500 Emini chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Weekly-Wedge-Bear-Flag-Start-of-Pullback.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Weekly-Wedge-Bear-Flag-Start-of-Pullback-680x383.png\" alt=\"Emini start of Pullback from Wedge Bear Flag on weekly chart\" class=\"wp-image-166426\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Weekly-Wedge-Bear-Flag-Start-of-Pullback-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Weekly-Wedge-Bear-Flag-Start-of-Pullback-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Weekly-Wedge-Bear-Flag-Start-of-Pullback-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Weekly-Wedge-Bear-Flag-Start-of-Pullback-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Weekly-Wedge-Bear-Flag-Start-of-Pullback.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.investing.com\/indices\/us-spx-500-futures\" target=\"_blank\" rel=\"noreferrer noopener\">This week\u2019s Emini candlestick<\/a>&nbsp;was a big bear bar closing near the low.<\/li>\n\n\n\n<li>Last week, we said that the odds slightly favor the Emini to trade at least a little higher. However, the wedge bear flag increases the odds of a pullback within 1 to 3 weeks.<\/li>\n\n\n\n<li>This week closed below last week&#8217;s low and the 20-week exponential moving average.<\/li>\n\n\n\n<li>The bulls got a reversal higher from a wedge bottom (Feb 24, June 17 and Oct 13) with a nested wedge (Sept 6, Sept 30 and Oct 13).<\/li>\n\n\n\n<li>They then got a second leg sideways to up from a higher low major trend reversal (Nov 3).<\/li>\n\n\n\n<li>While the move up from October low is in a tight bull channel, there is a lot of overlapping price action.&nbsp;<\/li>\n\n\n\n<li>That means the bulls are not yet as strong as they would like to be.&nbsp;<\/li>\n\n\n\n<li>The problem with the bull\u2019s case is that the selloff from August was very strong. The sideways to up leg may lead to a lower high. For now, this remains true.<\/li>\n\n\n\n<li>The bulls need to create strong consecutive bull bars closing near their highs breaking far above the major bear trend line to signal the end of the correction.<\/li>\n\n\n\n<li>The bulls hope that this week was simply a pullback and want a retest of the December 1 high.<\/li>\n\n\n\n<li>They want the 20-week exponential moving average to act as support and hope the Emini will trade sideways around it instead of a deep pullback.<\/li>\n\n\n\n<li>The bears hope that the move up is simply forming a wedge bear flag (Oct 5, Nov 15, and Dec 1), a double top bear flag (Sept 12) and a lower high.<\/li>\n\n\n\n<li>Bears see the selloff from January as a broad bear channel. The major bear trend line remains as resistance above.<\/li>\n\n\n\n<li>Since the October low, the bull bars are big, closing near their highs, while the bear bars are weak and had no follow-through selling. That means stronger buying pressure.<\/li>\n\n\n\n<li>The bears hope that this week is the start of a deeper pullback. They will need to create a follow-through bear bar to increase the odds of lower prices.<\/li>\n\n\n\n<li>They want a retest of the October low followed by a strong breakout and a measured move down to around 3450, or the 3400 Big Round Number which is also the 2020 high.<\/li>\n\n\n\n<li>Since this week was a bear bar closing near the low, it is a good sell signal bar for next week.<\/li>\n\n\n\n<li>The Emini may gap down on Monday. Small gaps usually close early.<\/li>\n\n\n\n<li>For now, traders will see if the bears can get a consecutive bear bar. If they do, the odds of the sideways to down pullback phase have begun.<\/li>\n\n\n\n<li>The wedge bear flag increases the odds of a pullback within 1 to 3 weeks. It may have started this week.<\/li>\n\n\n\n<li>However, odds slightly favor at least a small second leg sideways to up to retest the bull leg extreme after the pullback.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Daily<\/em> S&amp;P 500 Emini chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Daily-Start-of-Pullback-or-Retest-of-Leg-High.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Daily-Start-of-Pullback-or-Retest-of-Leg-High-680x383.png\" alt=\"Emini Daily: Start of Pullback or Retest of Leg High?\" class=\"wp-image-166429\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Daily-Start-of-Pullback-or-Retest-of-Leg-High-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Daily-Start-of-Pullback-or-Retest-of-Leg-High-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Daily-Start-of-Pullback-or-Retest-of-Leg-High-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Daily-Start-of-Pullback-or-Retest-of-Leg-High-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Daily-Start-of-Pullback-or-Retest-of-Leg-High.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Monday traded lower with follow-through selling on Tuesday. Midweek onwards traded sideways with Friday reversing into an outside bear bar closing near its low.&nbsp;<\/li>\n\n\n\n<li>Previously, we said that the odds slightly favor the Emini to trade at least a little higher. The wedge bear flag and double top increase the odds that we may see a deeper pullback within 1 to 3 weeks. The pullback may have begun.<\/li>\n\n\n\n<li>The bears want a reversal down from a wedge bear flag (Nov 1, Nov 15, and Dec 1) and a double top bear flag (Sept 12) around the major bear trend line.<\/li>\n\n\n\n<li>Bears see the selloff from January as a broad bear channel.<\/li>\n\n\n\n<li>They want a retest of the October low followed by a strong breakout and a measured move down to 3450, or slightly lower around the 3400 big round number which is also 2020 high.<\/li>\n\n\n\n<li>They will need to create strong consecutive bear bars closing near their lows (like August) to increase the odds of a reversal down.<\/li>\n\n\n\n<li>The bears hope that this week is the start of a 2-legged sideways to down pullback and want another leg down.<\/li>\n\n\n\n<li>Bulls got a reversal higher from a lower low major trend reversal with the June low, a wedge bull flag (Feb 24, June 17, and Oct 13) and a nested wedge (Sept 6, Sept 30 and Oct 13).<\/li>\n\n\n\n<li>They then got the second leg sideways to up from a higher low major trend reversal (Nov 3).<\/li>\n\n\n\n<li>So far, the bulls have yet to break above the major bear trend line.<\/li>\n\n\n\n<li>The problem with the bull\u2019s case is that the selloff from August 16 was very strong. The current sideways to up pullbacks may lead to a lower high. For now, this remains true.<\/li>\n\n\n\n<li>The move up from October had a lot of overlapping price action. The bulls are not yet as strong as they would like to be.<\/li>\n\n\n\n<li>The bulls need to create strong consecutive bull bars closing near their highs and trading far above the major bear trend line, to convince traders that a reversal higher is underway.<\/li>\n\n\n\n<li>Since the pullback on Wednesday to Friday was weak, odds slightly favor the Emini to trade at least a little lower.<\/li>\n\n\n\n<li>Traders will see if the bears can create a strong second leg sideways to down or if next week trades slightly lower but reverses up again to retest Dec 1 high.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Trading room<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Al Brooks and other presenters talk about the detailed Emini price action real-time each day in the BrooksPriceAction.com <a class=\"rank-math-link\" href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\" target=\"_blank\" rel=\"noreferrer noopener\">trading room<\/a>. We offer a <a href=\"http:\/\/www.brookspriceaction.com\/portal.php?page=11\" target=\"_blank\" rel=\"noreferrer noopener\">2 day free trial<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Market analysis reports archive<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">You can access all weekend reports on the <a rel=\"noreferrer noopener\" class=\"rank-math-link\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/analysis\/\" target=\"_blank\">Market Analysis<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Market Overview: S&amp;P 500 Emini Futures The&nbsp;S&amp;P 500 Emini&nbsp;futures bears hope that this week is the Emini start of pullback from the wedge bear flag. The weekly candlestick closed below last week&#8217;s low and the 20-week exponential moving average. They need to create a follow-through bear bar to increase the odds of lower prices. The [&hellip;]<\/p>\n","protected":false},"author":2836,"featured_media":166426,"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":[136,1843],"tags":[1356,60],"class_list":["post-166236","post","type-post","status-publish","format-standard","has-post-thumbnail","category-analysis","category-sp500-emini","tag-emini-pullback","tag-sp-emini","entry","override","shadow"],"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/12\/Emini-Weekly-Wedge-Bear-Flag-Start-of-Pullback.png","author_info":{"display_name":"Andrew","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/andrewa\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/166236","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\/2836"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=166236"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/166236\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/166426"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=166236"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=166236"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=166236"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}