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<\/a><\/p>\nThe monthly S&P500 Emini futures candlestick chart has been in a tight trading range for for 7 months.<\/p>\n
The monthly S&P500 Emini futures candlestick chart is in a 7 month tight trading range<\/a> and it has not touched the moving average in 34 months, which is exceptional. Fast Money<\/em> yesterday finally had a technician on the show who made that point. He used the 200 day moving average as his measure of how extremely overbought the Emini is<\/a>. He also used the 1987 crash as an example of a time when the market was above the moving average for a comparably long time. He correctly did not say that the current market is in any other way like that crash, but he did say that he expects a 10% correction. <\/p>\n Since the Emini has an 80% chance of getting back to the moving average this year and it is more than 10% below today’s close, I think that 10% is the minimum objective and that it might also test below the October low.<\/p>\n The weekly S&P500 Emini futures candlestick chart closed the week with a doji candlestick pattern within a 3 month tight trading range. <\/p>\n The weekly S&P500 Emini futures candlestick chart continues in its 13 week tight trading range. It is in https:\/\/www.brookstradingcourse.com\/how-to-trade-manual\/trading-ranges\/#breakout-mode. Since this tight trading range is occurring late in a bull trend, a bull breakout will probably be followed by a final flag reversal<\/a>.<\/p>\n The daily S&P500 Emini futures candlestick chart is gapped up today, but it is still within the trading range.<\/p>\n The daily S&P500 Emini futures candlestick chart gapped up again today, but it is still below the all-time high. Bears are shorting this rally with a tight stop above the all-time high, betting that the Emini will begin to form a series of lower highs and then have s strong bear breakout. Whenever a stop is tight, the probability of success has to be low because there has to be a reason for an institution to take the other side of the trade. If the bears get great risk:reward, the bulls get higher probability<\/a>. The candlestick pattern is an ascending triangle, and the probability is that it will have a bull breakout. However, a triangle forming late in a bull trend usually becomes the final bull flag before a correction.<\/p>\n The dollar is oversold on the daily chart and has formed a wedge bull flag over the past month. For those trading Forex for a living, look for a bounce in the dollar over the next couple of weeks. The dollar rally was so climactic that this trend resumption, should it occur, will probably be within a developing trading range on the daily chart. This means that sideways for at least another month is likely.<\/p>\n The EURUSD rally has been strong on the daily chart, but the EURUSD began to turn down yesterday after a new high in a month long bull micro channel. Traders learning how to trade Forex markets should expect t trading range or pullback lasting at least a week. The rally was strong enough so that Forex price action traders expect that any selloff will form a higher low, and then a 2nd leg up. Less likely, this rally is forming a double top with the February high, and the selloff will fall below the neckline (March low) for a measured move down.<\/p>\n Traders can see the end of the day 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 trading room<\/a>, and a 2 day free trial<\/a> is available.<\/p>\nWeekly S&P500 Emini futures candlestick chart: Breakout mode<\/h2>\n
<\/a><\/p>\nDaily S&P500 Emini futures candlestick chart: Testing the top of the trading range<\/h2>\n
<\/a><\/p>\nBest Forex trading strategies<\/h2>\n
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