{"id":87061,"date":"2019-02-21T06:20:37","date_gmt":"2019-02-21T14:20:37","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=87061"},"modified":"2019-02-21T13:55:29","modified_gmt":"2019-02-21T21:55:29","slug":"emini-buy-climax-2800-magnet-no-top-yet","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/market-update\/emini-buy-climax-2800-magnet-no-top-yet\/","title":{"rendered":"Emini buy climax but 2800 magnet above and no top yet<\/strong>
Intraday market update: Thursday February 21, 2019"},"content":{"rendered":"\n

Emini buy climax but 2800 magnet above and no top yet<\/h2>\n\n\n\n

I will update again at the end of the day.<\/p>\n\n\n\n

Pre-Open market analysis<\/h2>\n\n\n\n

The Emini has a buy climax on the daily and weekly charts. But, a climax can continue to rally far longer than what might seem likely. For example, the bulls could finally get a strong breakout above 2,800. <\/p>\n\n\n\n

More likely, the bulls will begin to take profits this week or next. That will probably result in a 2 – 3 week pullback. <\/p>\n\n\n\n

The stock market has had 8 consecutive bull bars on the weekly chart with a 10% rally many times over the past 100 years. Two thirds of the time, the market was down an average of 2% within the next month.<\/p>\n\n\n\n

There is no reliable top yet on the daily chart. Yesterday had a bull body and therefore is a low probability sell signal bar. However, the risk of a big move up or down is growing. While most days continue to have trading range price action, day traders have to be ready for the 5 minute chart to begin to form trend days.<\/p>\n\n\n\n

Overnight Emini Globex trading <\/h3>\n\n\n\n

The Emini rallied to within 2 points of 2,800 overnight and then sold off. That has been major resistance for over a year. The Emini is now down 6 points in the Globex session.<\/p>\n\n\n\n

The bulls know that many bears will exit their shorts above the triple top on the daily chart. If the bulls can break above, they might get a sharp rally to a new all-time high within weeks.<\/p>\n\n\n\n

They know this is unlikely. However, they keep buying until they believe they will fail. If they conclude that they cannot achieve their goal, instead of a sharp rally from bears giving up, there could be a sharp selloff from bulls giving up. There is therefore an increased chance of several strong days up or down beginning within a couple weeks. Until then, day traders will continue to look for 2 – 3 hours swings up and down.<\/p>\n\n\n\n

Yesterday’s setups<\/h2>\n\n\n\n
\"Emini<\/a><\/figure>\n\n\n\n

Here are several reasonable stop entry setups from yesterday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely also show limit order entries and entries on the close of bars. My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter.<\/p>\n\n\n\n

EURUSD Forex wedge bear flag at bottom of trading range<\/h2>\n\n\n\n
\"EURUSD<\/a><\/figure>\n\n\n\n

<\/p>\n\n\n\n

The EURUSD daily Forex chart sold off strongly to the bottom of the 4 month trading range. Since trading ranges resist breaking out, the odds favor a bull leg in the trading range. <\/p>\n\n\n\n

The chart has rallied for 2 weeks in a bull channel. That channel is a micro wedge and the selloff was strong. Both factors make a test of the low likely. Therefore, the rally will probably exhaust itself in the next few days. The bulls will take profits, which will create a leg down. Because trading ranges resist breaking out, the bulls will buy again below 1.13. That will probably result in a 3 – 4 week rally from last week’s low.<\/p>\n\n\n\n

The bears hope that the 2 week wedge rally is a bear flag. They will sell it, hoping for a strong break below the November low. But, trading ranges have many strong legs up and down and most reverse. Consequently, that is what is likely here. <\/p>\n\n\n\n

All trading ranges on the daily chart over the past 2 years converted into trends within a couple months. Therefore, this one is overdue. As a result, traders expect a breakout up or down anytime soon, and then about a 300 pip measured move. <\/p>\n\n\n\n

Overnight EURUSD Forex trading<\/h3>\n\n\n\n

The EURUSD 5 minute Forex chart formed an expanding triangle overnight. This is a Breakout Mode pattern. In addition, the 5 minute chart has been sideways for 3 days. The legs have been big enough for 20 – 30 pip scalps.<\/p>\n\n\n\n

Since the 240 minute chart is in its 3rd leg up in a wedge rally, the odds favor profit taking within a couple of days. Therefore, if there is a bull breakout above the triangle, the bulls will probably take profits around 1.14. That is about a 50% retracement of the February selloff. If the bears get a reversal down, they will take profits below 1.13.<\/p>\n\n\n\n

If today goes above yesterday’s high, today will be another outside up day, like Tuesday. However, the odds are that the 2 week tight trading range will continue today. There will be sellers above yesterday’s high, just like there were buyers below yesterday’s low.<\/p>\n\n\n\n

Summary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n\n\n\n
\"Emini<\/a><\/figure>\n\n\n\n

Here are several reasonable stop entry setups for today. I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely also show limit order entries and entries on the close of bars. My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter.\n<\/p>\n\n\n\n

End of day summary<\/h3>\n\n\n\n

The Emini formed a trading range day. There was a strong selloff that tested the open of the week. However, the bulls bought the test and the day closed in the middle of the range.<\/p>\n\n\n\n

Tomorrow is Friday and the bulls want a 9th consecutive bull trend bar on the weekly chart. That is rare. There has only been one streak of more than 9 weeks in 20 years. Consequently, probably either tomorrow will close below this week’s open or next week will have a bear body. <\/p>\n\n\n\n

Since this week’s open is just below today’s low, it is a magnet tomorrow. This is especially true in the final hour. If the bears get a bear body on the weekly chart, the Emini will probably begin to pull back for 2 – 3 weeks.<\/p>\n\n\n\n

See the weekly update<\/a> for a discussion of the price action on the weekly chart and for what to expect going into next week.<\/em><\/p>\n\n\n\n

\n\n\n\n

Trading Room<\/h2>\n\n\n\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 S&P Emini futures price action real-time throughout the day in the BrooksPriceAction.com trading room<\/a>. We offer a 2 day free trial<\/a>.<\/p>\n\n\n\n

\n\n\n\n

Charts use Pacific Standard Time<\/h3>\n\n\n\n

When I mention time, it is USA Pacific Standard Time (the Emini day session opens at 6:30 am PST, and closes at 1:15 pm PST). You can read background information on the intraday market reports on the Intraday Market Update<\/a> page.<\/p>\n\n\n\n

\n","protected":false},"excerpt":{"rendered":"

Emini buy climax but 2800 magnet above and no top yet I will update again at the end of the day. Pre-Open market analysis The Emini has a buy climax on the daily and weekly charts. But, a climax can continue to rally far longer than what might seem likely. For example, the bulls could […]<\/p>\n","protected":false},"author":4,"featured_media":0,"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":"shadow","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[153],"tags":[],"class_list":{"0":"post-87061","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-market-update","7":"entry","8":"has-post-thumbnail","9":"override"},"featured_image_src":null,"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\/87061","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=87061"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/87061\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=87061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=87061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=87061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}