{"id":187217,"date":"2023-08-20T01:30:00","date_gmt":"2023-08-20T08:30:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=187217"},"modified":"2023-08-19T12:58:12","modified_gmt":"2023-08-19T19:58:12","slug":"emini-test-of-the-20-week-ema","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/emini-test-of-the-20-week-ema\/","title":{"rendered":"Emini Test of the 20-Week EMA"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Market Overview: S&amp;P 500 Emini Futures<\/h2>\n\n\n\n<p>The bears created an Emini test of the 20-week EMA on the weekly chart. They need to create follow-through selling trading far below the 20-week EMA to increase the odds of a reversal down. The bulls see the move down as a minor pullback and want at least a small retest of the July 27 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\/2023\/08\/Emini-Weekly-Test-of-20-Week-EMA.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/08\/Emini-Weekly-Test-of-20-Week-EMA-680x383.jpg\" alt=\"Emini Weekly: Emini Test of the 20-Week EMA\" class=\"wp-image-187437\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/08\/Emini-Weekly-Test-of-20-Week-EMA-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/08\/Emini-Weekly-Test-of-20-Week-EMA-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/08\/Emini-Weekly-Test-of-20-Week-EMA-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/08\/Emini-Weekly-Test-of-20-Week-EMA-1536x864.jpg 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/08\/Emini-Weekly-Test-of-20-Week-EMA.jpg 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&nbsp;<\/a>was another consecutive bear bar closing in its lower half with a prominent tail below.<\/li>\n\n\n\n<li>Last week, we said that the odds continue to slightly favor the market to still be in the sideways to down pullback phase.<\/li>\n\n\n\n<li>The bears got a reversal down from a wedge pattern (Dec 13, Feb 2, and Jul 27) and a micro wedge (Jul 14, Jul 19, and Jul 27).<\/li>\n\n\n\n<li>They want a larger pullback from a climactic move.&nbsp;<\/li>\n\n\n\n<li>A reasonable target for the bears is the 20-week exponential moving average and they got it this week.<\/li>\n\n\n\n<li>They will need to continue creating consecutive strong bear bars trading far below the 20-week exponential moving average (EMA) to convince traders that a reversal down could be underway.<\/li>\n\n\n\n<li>The bulls got a strong leg up (since March) in a tight bull channel.<\/li>\n\n\n\n<li>They want a measured move using the height of the 6-month trading range which will take them to the March 2022 high area.<\/li>\n\n\n\n<li>The move up had lasted a long time (4 months) and was climactic.<\/li>\n\n\n\n<li>The market needed to trade sideways to down to work off the overbought condition. The minor pullback has begun.<\/li>\n\n\n\n<li>The bulls want any pullback to be shallow and weak (with overlapping bars, doji(s) and bull bars) and for the 20-week EMA to act as support.<\/li>\n\n\n\n<li>For now, odds are the pullback would likely be minor to be followed by at least a small retest of the prior leg high (Jul 27).<\/li>\n\n\n\n<li>Since this week\u2019s candlestick was a bear bar closing in the lower half, it is a sell signal bar for next week.<\/li>\n\n\n\n<li>The odds slightly favor at least a small second leg sideways to down after a small pullback.<\/li>\n\n\n\n<li>Traders will see if the bears can continue to create consecutive bear bars or will the pullback stall sideways around the 20-week EMA.<\/li>\n\n\n\n<li>If next week is a surprise bull bar about equal in size to this week\u2019s candlestick closing near its high, it could lead to a retest of the July 27 high.<\/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\/2023\/08\/Emini-Daily-Second-Leg-Down-Strong-Leg-or-Climactic.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/08\/Emini-Daily-Second-Leg-Down-Strong-Leg-or-Climactic-680x383.jpg\" alt=\"Emini Daily: Second Leg Down; Strong Leg or Climactic?\" class=\"wp-image-187440\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/08\/Emini-Daily-Second-Leg-Down-Strong-Leg-or-Climactic-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/08\/Emini-Daily-Second-Leg-Down-Strong-Leg-or-Climactic-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/08\/Emini-Daily-Second-Leg-Down-Strong-Leg-or-Climactic-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/08\/Emini-Daily-Second-Leg-Down-Strong-Leg-or-Climactic-1536x864.jpg 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/08\/Emini-Daily-Second-Leg-Down-Strong-Leg-or-Climactic.jpg 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Emini traded lower for the week. Friday gapped lower but reversed to close as a bull bar near in its upper half.<\/li>\n\n\n\n<li>Last week, we said that odds slightly favor the market to still be in the sideways to down pullback phase.<\/li>\n\n\n\n<li>The bears manage to create another leg down this week. The move down is in a tight bear channel.<\/li>\n\n\n\n<li>They got a reversal from a climactic move, a wedge pattern (Dec 13, Feb 2, and Jul 27), and a small wedge (Jun 30, Jun 19, and July 27).<\/li>\n\n\n\n<li>A pullback would usually last at least TBTL (Ten Bars, Two Legs). So far, the minimum requirement has been fulfilled.<\/li>\n\n\n\n<li>They will need to continue creating strong bear bars closing near their lows, trading far below the bull trendline to increase the odds of a reversal down.<\/li>\n\n\n\n<li>If there is a pullback (bounce), they want at least a small second leg sideways to down.<\/li>\n\n\n\n<li>The bulls want a measured move up using the height of the 6-month trading range which will take them near the March 2022 high.<\/li>\n\n\n\n<li>The move up since March 13 low is in a tight bull channel which means strong bulls.&nbsp;<\/li>\n\n\n\n<li>However, it also lasted a long time and was climactic. A minor pullback has begun.<\/li>\n\n\n\n<li>The bulls want a retest of the July 27 high followed by a breakout above and a continuation of the bull trend.<\/li>\n\n\n\n<li>Since Friday was a bull bar closing in the upper half, it is a buy signal bar for Monday.<\/li>\n\n\n\n<li>The move down is slightly climactic. The market may trade slightly higher early next week.<\/li>\n\n\n\n<li>However, it is following a 5-bar bear microchannel. It may not be a strong buy setup.<\/li>\n\n\n\n<li>Because of the tight bear channel down, odds slightly favor at least a small second leg sideways to down after a pullback (bounce).<\/li>\n\n\n\n<li>Overall, odds slightly favor the current sideways to down pullback to be minor and at least a small retest of the prior trend high (Jul 27) after the pullback phase.<\/li>\n\n\n\n<li>For now, traders will see if the bears can create another leg down after a pullback or will the bulls start creating strong consecutive bull bars instead.&nbsp;<\/li>\n\n\n\n<li>If the bulls manage to create consecutive bull bars closing near their highs instead, it could lead to a retest of the July 27 high.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Trading room<\/h2>\n\n\n\n<p>Al Brooks and other presenters talk about the detailed Emini price action real-time each 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 has-css-opacity\" \/>\n\n\n\n<h3 class=\"wp-block-heading\">Market analysis reports archive<\/h3>\n\n\n\n<p>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 bears created an Emini test of the 20-week EMA on the weekly chart. They need to create follow-through selling trading far below the 20-week EMA to increase the odds of a reversal down. The bulls see the move down as a minor pullback and want at least a [&hellip;]<\/p>\n","protected":false},"author":2836,"featured_media":187437,"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":[60],"class_list":{"0":"post-187217","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-analysis","8":"category-sp500-emini","9":"tag-sp-emini","10":"entry","11":"override","12":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/08\/Emini-Weekly-Test-of-20-Week-EMA.jpg","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\/187217","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=187217"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/187217\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/187437"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=187217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=187217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=187217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}