Posted 8:32 am PST.
The most important price action in today’s intraday market update is the bull trend opening reversal. The market broke out to another all-time high by going above yesterday’s high. The Emini and S&P500 had breakout mode opens (two reversals) and got bear breakouts, but the breakouts lacked follow-through. The Emini reversed up and had a bull breakout above a wedge bear flag at 8:05, and then broke out to another new high of the day.
The bears want the breakout to fail and form an expanding triangle top and possibly a parabolic wedge top, and the bulls want a measured move up above the 5 minute failed wedge bear flag, and this would be close to the measured move projection at 1988 based on the May 27 gap on the daily chart. Since the price action has been two-sided all day with many reversals, the day will probably be a trading range day or a weak bull trend day. At the moment, this is the third breakout above yesterday’s high, and the Emini has about a 70% chance of not falling below the current low of the day.
See the weekly update for a discussion of the weekly chart.