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Emini having longest streak of bull days in 10 years

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Emini and Forex Trading Update:
Tuesday April 13, 2021

Pre-Open market analysis of daily chart

  • Yesterday was 12th consecutive bull day and the 12th day in a bull micro channel.
  • The last time there were 12 or more consecutive bull days was in February 2011. That streak ended after 15 days. It was followed by a 9% correction that lasted 2 months. After a minor new high, there was a 24% correction into October.
  • 3 legs up in tight bull channel over past 3 weeks, so parabolic wedge buy climax.
  • Even though very strong bull trend, the buy climax is extreme. There is an increased chance of a reversal down coming at any time. Will it be as big as in 2011? There is a 50% chance of it being 10% and a 30% chance of it being 20%.
  • Buy climaxes can last much longer than what might seem reasonable. While unlikely, this one could continue much higher.
  • But it is already a once-a-decade type of buy climax. Therefore, even if it continues up, it will probably not go much higher before there is profit taking for at least a couple weeks.
  • As I said over the weekend, the Emini might soon put in the high for the next many months and possibly for the year.

IMPORTANT: Reduced Emini and Forex reports

  • Due to need to reduce workload, Al will only be writing the Emini and Forex daily reports on the days he is active in trading room. This will usually be 3 times a week: Monday, Wednesday, and Friday.
  • The previous day’s Emini setups chart will be posted on those days with no report.
  • See Trading Room calendar in right-hand-side sidebar for when reports are to be issued.
  • Apologies for short notice.

Yesterday’s Emini setups

Emini wedge bull flag and 2nd leg bull trap

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. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day (see Online Course/BTC Daily Setups).

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.

If the risk is too big for your account, you should wait for trades with less risk or trade an alternative market like the Micro Emini.

See the weekly update for a discussion of the price action on the weekly chart and for what to expect going into next week.

Trading Room

Traders can see the end of the day bar-by-bar price action report by signing up 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. We offer a 2 day free trial.

Charts use Pacific Time

When I mention time, it is USA Pacific Time (the Emini day session opens at 6:30 am PT, and closes at 1:15 pm PT). You can read background information on the intraday market reports on the Market Update page.

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