The Weekly<\/em> S&P 500 Emini chart<\/h3>\n\n\n\n![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/Emini-Weekly-Parabolic-Wedge-Embedded-Wedge-680x383.jpg\" "\\"\\"")
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n\n- This week\u2019s Emini candlestick <\/a>was a big bull bar breaking above the outside doji.<\/li>\n\n\n\n
- Last week<\/a>, we said that while the market continues to be Always In Long, the rally has lasted a long time and is slightly climactic. Traders should be prepared for a minor pullback which can begin within a few weeks.<\/li>\n\n\n\n
- This week continued higher following the big gap up on Thursday following Nvidia\u2019s earnings release.<\/li>\n\n\n\n
- The bulls have a tight bull channel. That means strong bulls.<\/li>\n\n\n\n
- They want a strong breakout into a new all-time high territory, hoping that it will lead to many months of sideways to up trading. They will need to continue to create sustained follow-through buying above the prior all-time high.<\/li>\n\n\n\n
- However, we may also see some profit-taking activity once the market starts to stall. <\/li>\n\n\n\n
- If a pullback begins, the bulls want it to be sideways and shallow, filled with bull bars, doji(s) and overlapping candlesticks.<\/li>\n\n\n\n
- The bears hope that the strong rally is simply a buy-vacuum test of the prior all-time high.<\/li>\n\n\n\n
- They want a reversal from a higher high major trend reversal and a large wedge pattern (Feb 2, July 27, and Feb 23). They want a failed breakout above the all-time high and the trend channel line.<\/li>\n\n\n\n
- They also see a parabolic wedge in the third leg up since October (Nov 22, Dec 28, and Feb 23) and a micro wedge (Jan 24, Feb 9, and Feb 23).<\/li>\n\n\n\n
- They hope to get a TBTL (Ten Bars, Two Legs) pullback of at least 5-to-10%. They want at least a test of the 20-week EMA.<\/li>\n\n\n\n
- The problem with the bear\u2019s case is that the rally is very strong. They would need to create a few strong bear bars to indicate that they are at least temporarily back in control. So far they have not yet been able to do so.<\/li>\n\n\n\n
- Since this week\u2019s candlestick is a big bull bar closing near its high, it is a buy signal bar for next week.<\/li>\n\n\n\n
- However, being one of the biggest bull bars appearing late in a trend may be a sign of climactic behavior.<\/li>\n\n\n\n
- The recent candlesticks having some overlapping ranges also indicate a slight loss of momentum from the bulls.<\/li>\n\n\n\n
- While the market continues to be Always In Long, the rally has lasted a long time and is slightly climactic.<\/li>\n\n\n\n
- Traders should be prepared for a minor pullback which can begin within a few weeks. This remains true.<\/li>\n\n\n\n
- However, until the bears can create strong bear bars, traders will not be willing to sell aggressively.<\/li>\n\n\n\n
- Sometimes, a euphoric market (as it is now) can continue higher (even when seemingly impossible) into a blow-off top.<\/li>\n\n\n\n
- Traders will see if we start to get more selling pressure or will the bulls continue to create follow-through buying.<\/li>\n<\/ul>\n\n\n\n
The Daily<\/em> S&P 500 Emini chart<\/h3>\n\n\n\n![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/Emini-Daily-Parabolic-Wedge-Embedded-Wedge-680x383.jpg\" "\\"\\"")
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n\n- The market traded lower earlier in the week but lacked follow-through selling. Thursday gap up following Nvidia\u2019s earnings release but lacked follow-through buying on Friday.<\/li>\n\n\n\n
- Last week<\/a>, we said that the odds slightly favor the market to still be Always In Long. However, the rally has lasted a long time and is slightly climactic and traders should be prepared for a minor pullback which can begin within a few weeks.<\/li>\n\n\n\n
- The bulls got a tight bull channel up testing the prior all-time high (Jan 2022).<\/li>\n\n\n\n
- They hope that the current rally will form a spike and channel which will last for many months after a deeper pullback.<\/li>\n\n\n\n
- They want another leg up completing the wedge with the first two legs being January 30 and February 12. They got what they wanted.<\/li>\n\n\n\n
- The move up since January now consists of 3 pushes, therefore a wedge (Jan 30, Feb 12, and Feb 23).<\/li>\n\n\n\n
- If there is a deeper pullback, the bulls want at least a small sideways to up leg to retest the current trend extreme high (now Feb 23).<\/li>\n\n\n\n
- The bears hope that the strong rally is simply a buy vacuum retest of the prior all-time high.<\/li>\n\n\n\n
- They want a reversal down from a higher high major trend reversal, a large wedge pattern (Feb 2, July 27, and Feb 23) and a parabolic wedge (Nov 22, Dec 28, and Feb 23).<\/li>\n\n\n\n
- They also see an embedded wedge in the current leg up (Jan 30, Feb 12, and Feb 23).<\/li>\n\n\n\n
- The bears will need to create consecutive bear bars closing near their lows and trading far below the 20-day EMA and the bear trend line to indicate that they are at least temporarily back in control.<\/li>\n\n\n\n
- Since Friday was a small doji bear bar, it is a sell signal bar for Monday albeit not very strong. If the bears can create sustained follow-through selling, it may lead to the start of the pullback phase.<\/li>\n\n\n\n
- For now, odds slightly favor the market to still be Always In Long. However, the rally has lasted a long time and is slightly climactic. <\/li>\n\n\n\n
- While there are no signs of strong selling pressure yet, traders should be prepared for a minor pullback which can begin within a few weeks. This remains true.<\/li>\n\n\n\n
- Traders will see if the bulls can continue to create sustained follow-through buying above the all-time high.<\/li>\n\n\n\n
- Or will the market continue to stall around the all-time high area, prompting more profit-taking price action to begin soon?<\/li>\n<\/ul>\n\n\n\n
Trading room<\/h2>\n\n\n\n
Al Brooks and other presenters talk about the detailed Emini price action real-time each day in the BrooksPriceAction.com trading room<\/a>. We offer a 2 day free trial<\/a>.<\/p>\n\n\n\n
\n\n\n\nMarket analysis reports archive<\/h3>\n\n\n\n
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n
- \n
- This week\u2019s Emini candlestick <\/a>was a big bull bar breaking above the outside doji.<\/li>\n\n\n\n
- Last week<\/a>, we said that while the market continues to be Always In Long, the rally has lasted a long time and is slightly climactic. Traders should be prepared for a minor pullback which can begin within a few weeks.<\/li>\n\n\n\n
- This week continued higher following the big gap up on Thursday following Nvidia\u2019s earnings release.<\/li>\n\n\n\n
- The bulls have a tight bull channel. That means strong bulls.<\/li>\n\n\n\n
- They want a strong breakout into a new all-time high territory, hoping that it will lead to many months of sideways to up trading. They will need to continue to create sustained follow-through buying above the prior all-time high.<\/li>\n\n\n\n
- However, we may also see some profit-taking activity once the market starts to stall. <\/li>\n\n\n\n
- If a pullback begins, the bulls want it to be sideways and shallow, filled with bull bars, doji(s) and overlapping candlesticks.<\/li>\n\n\n\n
- The bears hope that the strong rally is simply a buy-vacuum test of the prior all-time high.<\/li>\n\n\n\n
- They want a reversal from a higher high major trend reversal and a large wedge pattern (Feb 2, July 27, and Feb 23). They want a failed breakout above the all-time high and the trend channel line.<\/li>\n\n\n\n
- They also see a parabolic wedge in the third leg up since October (Nov 22, Dec 28, and Feb 23) and a micro wedge (Jan 24, Feb 9, and Feb 23).<\/li>\n\n\n\n
- They hope to get a TBTL (Ten Bars, Two Legs) pullback of at least 5-to-10%. They want at least a test of the 20-week EMA.<\/li>\n\n\n\n
- The problem with the bear\u2019s case is that the rally is very strong. They would need to create a few strong bear bars to indicate that they are at least temporarily back in control. So far they have not yet been able to do so.<\/li>\n\n\n\n
- Since this week\u2019s candlestick is a big bull bar closing near its high, it is a buy signal bar for next week.<\/li>\n\n\n\n
- However, being one of the biggest bull bars appearing late in a trend may be a sign of climactic behavior.<\/li>\n\n\n\n
- The recent candlesticks having some overlapping ranges also indicate a slight loss of momentum from the bulls.<\/li>\n\n\n\n
- While the market continues to be Always In Long, the rally has lasted a long time and is slightly climactic.<\/li>\n\n\n\n
- Traders should be prepared for a minor pullback which can begin within a few weeks. This remains true.<\/li>\n\n\n\n
- However, until the bears can create strong bear bars, traders will not be willing to sell aggressively.<\/li>\n\n\n\n
- Sometimes, a euphoric market (as it is now) can continue higher (even when seemingly impossible) into a blow-off top.<\/li>\n\n\n\n
- Traders will see if we start to get more selling pressure or will the bulls continue to create follow-through buying.<\/li>\n<\/ul>\n\n\n\n
The Daily<\/em> S&P 500 Emini chart<\/h3>\n\n\n\n
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n- \n
- The market traded lower earlier in the week but lacked follow-through selling. Thursday gap up following Nvidia\u2019s earnings release but lacked follow-through buying on Friday.<\/li>\n\n\n\n
- Last week<\/a>, we said that the odds slightly favor the market to still be Always In Long. However, the rally has lasted a long time and is slightly climactic and traders should be prepared for a minor pullback which can begin within a few weeks.<\/li>\n\n\n\n
- The bulls got a tight bull channel up testing the prior all-time high (Jan 2022).<\/li>\n\n\n\n
- They hope that the current rally will form a spike and channel which will last for many months after a deeper pullback.<\/li>\n\n\n\n
- They want another leg up completing the wedge with the first two legs being January 30 and February 12. They got what they wanted.<\/li>\n\n\n\n
- The move up since January now consists of 3 pushes, therefore a wedge (Jan 30, Feb 12, and Feb 23).<\/li>\n\n\n\n
- If there is a deeper pullback, the bulls want at least a small sideways to up leg to retest the current trend extreme high (now Feb 23).<\/li>\n\n\n\n
- The bears hope that the strong rally is simply a buy vacuum retest of the prior all-time high.<\/li>\n\n\n\n
- They want a reversal down from a higher high major trend reversal, a large wedge pattern (Feb 2, July 27, and Feb 23) and a parabolic wedge (Nov 22, Dec 28, and Feb 23).<\/li>\n\n\n\n
- They also see an embedded wedge in the current leg up (Jan 30, Feb 12, and Feb 23).<\/li>\n\n\n\n
- The bears will need to create consecutive bear bars closing near their lows and trading far below the 20-day EMA and the bear trend line to indicate that they are at least temporarily back in control.<\/li>\n\n\n\n
- Since Friday was a small doji bear bar, it is a sell signal bar for Monday albeit not very strong. If the bears can create sustained follow-through selling, it may lead to the start of the pullback phase.<\/li>\n\n\n\n
- For now, odds slightly favor the market to still be Always In Long. However, the rally has lasted a long time and is slightly climactic. <\/li>\n\n\n\n
- While there are no signs of strong selling pressure yet, traders should be prepared for a minor pullback which can begin within a few weeks. This remains true.<\/li>\n\n\n\n
- Traders will see if the bulls can continue to create sustained follow-through buying above the all-time high.<\/li>\n\n\n\n
- Or will the market continue to stall around the all-time high area, prompting more profit-taking price action to begin soon?<\/li>\n<\/ul>\n\n\n\n
Trading room<\/h2>\n\n\n\n
Al Brooks and other presenters talk about the detailed Emini price action real-time each day in the BrooksPriceAction.com trading room<\/a>. We offer a 2 day free trial<\/a>.<\/p>\n\n\n\n
\n\n\n\nMarket analysis reports archive<\/h3>\n\n\n\n
- Last week<\/a>, we said that while the market continues to be Always In Long, the rally has lasted a long time and is slightly climactic. Traders should be prepared for a minor pullback which can begin within a few weeks.<\/li>\n\n\n\n