{"id":138806,"date":"2021-12-05T01:30:00","date_gmt":"2021-12-05T09:30:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=138806"},"modified":"2021-12-05T13:01:07","modified_gmt":"2021-12-05T21:01:07","slug":"emini-bear-follow-through","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/emini-bear-follow-through\/","title":{"rendered":"Emini bear follow through testing support zone"},"content":{"rendered":"\n<h5 class=\"wp-block-heading\" id=\"0-al-added-some-comments-to-report\">Al added some comments to report<\/h5>\n\n\n<div style=\"max-width: -moz-fit-content; \" class=\"wp-block-ub-table-of-contents-block ub_table-of-contents\" id=\"ub_table-of-contents-c865b4fa-3051-4435-99af-a3d703a7cc21\" data-linktodivider=\"false\" data-showtext=\"show\" data-hidetext=\"hide\" data-scrolltype=\"auto\" data-enablesmoothscroll=\"false\" data-initiallyhideonmobile=\"false\" data-initiallyshow=\"true\"><div class=\"ub_table-of-contents-header-container\" style=\"background-color: #ebf2f5; \">\n\t\t\t<div class=\"ub_table-of-contents-header\" style=\"text-align: left; \">\n\t\t\t\t<div class=\"ub_table-of-contents-title\" style=\"\">Weekend report table of contents  <\/div>\n\t\t\t\t<div class=\"ub_table-of-contents-header-toggle\">\n\t\t\t<div class=\"ub_table-of-contents-toggle\" style=\"\">\n\t\t\t\u00a0[<a class=\"ub_table-of-contents-toggle-link\" href=\"#\" style=\"background-color: #ebf2f5; \">hide<\/a>]\n\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div><div class=\"ub_table-of-contents-extra-container\" style=\"background-color: #ebf2f5; \">\n\t\t\t<div class=\"ub_table-of-contents-container ub_table-of-contents-1-column \">\n\t\t\t\t<ul style=\"\"><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/emini-bear-follow-through\/#1-market-overview-weekend-market-analysis\" style=\"\">Market Overview: Weekend Market Analysis<\/a><\/li><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/emini-bear-follow-through\/#2-eurusd-forex-market-\" style=\"\">EURUSD Forex market<\/a><ul><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/emini-bear-follow-through\/#3-the-eurusd-monthly-chart\" style=\"\">The EURUSD monthly chart<\/a><\/li><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/emini-bear-follow-through\/#4-the-eurusd-weekly-chart\" style=\"\">The EURUSD weekly chart<\/a><\/li><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/emini-bear-follow-through\/#5-the-eurusd-daily-chart\" style=\"\">The EURUSD daily chart<\/a><\/li><\/ul><\/li><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/emini-bear-follow-through\/#6-sampp500-emini-futures\" style=\"\">S&amp;P500 Emini futures<\/a><ul><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/emini-bear-follow-through\/#7-the-monthly-emini-chart\" style=\"\">The Monthly Emini chart<\/a><\/li><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/emini-bear-follow-through\/#8-the-weekly-sampp500-emini-futures-chart\" style=\"\">The Weekly S&amp;P500 Emini futures chart<\/a><\/li><li style=\"\"><a href=\"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/emini-bear-follow-through\/#9-the-daily-sampp500-emini-futures-chart\" style=\"\">The Daily S&amp;P500 Emini futures chart<\/a><\/li><\/ul><\/li><\/ul>\n\t\t\t<\/div>\n\t\t<\/div><\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"1-market-overview-weekend-market-analysis\">Market Overview: Weekend Market Analysis<\/h2>\n\n\n\n<p>The <strong>SP500 Emini<\/strong> futures traded below November&#8217;s low on the monthly chart following a failed OO (Outside-Outside) pattern. Since the bull trend is strong, this is a minor sell signal with an Emini bear follow through bar. There are several support zones around the current levels, such as the bull trend line and the 50-day and 100-day moving averages on the daily chart. Traders are deciding whether the Emini will test the October low or make a new high.<\/p>\n\n\n\n<p>The <strong>EURUSD <\/strong>Forex is trading sideways to up following last week&#8217;s bull reversal from below from the bear channels on the weekly and daily charts. The bulls will need strong follow-through buying over the next 1- to 2-weeks to increase the odds of a stronger pullback (bounce). The bears are hoping that the yearlong bear trend will resume down from a double top bear flag. But even if it does, the EURUSD should begin about 2 months of sideways to up trading soon.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"2-eurusd-forex-market-\">EURUSD Forex market <\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"3-the-eurusd-monthly-chart\">The EURUSD <em>monthly <\/em>chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Monthly-Oct-Bear-Bar-With-Prominent-Tail-Below.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Monthly-Oct-Bear-Bar-With-Prominent-Tail-Below.png\" alt=\"EURUSD Forex Monthly Chart October Bear Bar with Prominent Tail Below\" class=\"wp-image-139022\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Monthly-Oct-Bear-Bar-With-Prominent-Tail-Below.png 1920w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Monthly-Oct-Bear-Bar-With-Prominent-Tail-Below-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Monthly-Oct-Bear-Bar-With-Prominent-Tail-Below-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Monthly-Oct-Bear-Bar-With-Prominent-Tail-Below-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Monthly-Oct-Bear-Bar-With-Prominent-Tail-Below-1536x864.png 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>November\u2019s candlestick was a bear bar with a prominent tail below.<\/li><li>The weak close indicates that it was not as strong as it could have been.<\/li><li>The bears want a 700-pip&nbsp;<a href=\"https:\/\/www.brookstradingcourse.com\/price-action\/10-best-price-action-trading-patterns\/#7-measured-moves\" target=\"_blank\" rel=\"noreferrer noopener\">measured move lower<\/a>&nbsp;based on the height of the yearlong trading range.&nbsp;<\/li><li>The move down since September is in a tight channel which means persistent selling.<\/li><li>There are also 3 pushes down since June, which is a wedge. However, the bulls need to create strong bull bars if they are going to stop the selling.<\/li><li>The bulls want a reversal higher from a trend channel line overshoot after testing below March 2020 high support. They hope that the selloff is simply a pullback from last year\u2019s breakout above the bear trend line.<\/li><li>Al has been saying that EURUSD is in the middle of a 7-year trading range and the selloff was climactic. That makes it likely to go sideways to up for a couple of months soon, whether it ultimately breaks below last year\u2019s low and the bottom of the 7-year range.<\/li><li>The bulls need to do more here by creating several bull bars closing near their highs to convince traders that the sell-off from July has ended.<\/li><li>If there is a reversal up within a few months, the 7-year trading range will be a triangle, beginning with the 2017 low.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"4-the-eurusd-weekly-chart\">The EURUSD <em>weekly<\/em> chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Weekly-Doji-Bar-\u2013-Weak-Follow-Through.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Weekly-Doji-Bar-\u2013-Weak-Follow-Through.png\" alt=\"EURUSD Weekly Chart Doji bar Weak Follow Through\" class=\"wp-image-139025\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Weekly-Doji-Bar-\u2013-Weak-Follow-Through.png 1920w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Weekly-Doji-Bar-\u2013-Weak-Follow-Through-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Weekly-Doji-Bar-\u2013-Weak-Follow-Through-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Weekly-Doji-Bar-\u2013-Weak-Follow-Through-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Weekly-Doji-Bar-\u2013-Weak-Follow-Through-1536x864.png 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>This week\u2019s candlestick on the weekly EURUSD Forex chart was a doji bar. The bulls did not get strong follow-through buying from last week\u2019s bull reversal bar, which was also a doji bar.<\/li><li>Doji bars in a trend are a sign of balance. They increase the chance of a transition into a trading range soon. There might be another brief leg down before the bear trend transitions into a trading range.<\/li><li>This week triggered a buy signal for a failed breakout below a bear channel. However, this week\u2019s candlestick was almost a perfect doji. It is not yet a strong reversal up, but the selling has stopped for 2 weeks.<\/li><li>Al has been saying that the EURUSD has been in a support zone for a few weeks and that it will likely reverse up for at least a few weeks. Most likely, it will soon form a trading range for at least a couple of months, but it might go a little lower first.&nbsp;<\/li><li>Less likely, the bear trend will continue down in a tight bear channel to below last year\u2019s low.&nbsp;<\/li><li>The bulls will need strong follow-through buying over the next 1- to 2-weeks. If they get that, it will lead to a 2-legged sideways to up move that typically lasts around 10 or more bars. On the weekly chart, that is at least a couple of months.&nbsp;<\/li><li>If those legs are strong, there could be a rally back to the October 28 high, which was the start of the most recent sell climax and therefore a magnet.&nbsp;<\/li><li>If the current pullback is more sideways, it would increase the chance of another leg down. The bears are hoping that this rally will quickly form a bear flag and then resume the yearlong bear trend.<\/li><li>However, with the chart in a 7-year trading range, traders still expect a couple of months of sideways to up trading to begin soon. Legs rarely go straight from the top to the bottom without some confusion, which is a hallmark of a trading range. This year has been clearly bearish. Clarity does not last forever in trading ranges.<\/li><li>The 2021 selloff is still more likely a pullback from the 2020 rally than a resumption of the bear trend that began 14 years ago. A couple months of sideways to up trading is likely before there is a breakout below the bottom of the 7-year range, if there is going to be a breakout below the bottom before a breakout above the top.<\/li><li>There is only a 30% chance that this selloff will continue down with only brief pullbacks and then break strongly below the 7-year trading range.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"5-the-eurusd-daily-chart\">The EURUSD <em>daily<\/em> chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Daily-Weak-Pullback-From-TCL-Overshoot.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Daily-Weak-Pullback-From-TCL-Overshoot.png\" alt=\"EURUSD Forex Daily Chart Weak Pullback from TCL Overshoot\" class=\"wp-image-139028\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Daily-Weak-Pullback-From-TCL-Overshoot.png 1920w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Daily-Weak-Pullback-From-TCL-Overshoot-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Daily-Weak-Pullback-From-TCL-Overshoot-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Daily-Weak-Pullback-From-TCL-Overshoot-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/EURUSD-Daily-Weak-Pullback-From-TCL-Overshoot-1536x864.png 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>The EURUSD formed an outside up bar on Tuesday, but it had prominent tails above and below the bar and it stalled at the high from 8 bars earlier. <\/li><li>Thursday broke below the bear inside bar, and the bears want a strong reversal down from a double top bear flag (November 18 and 30). It was also a Low 2 sell signal. <\/li><li>However, the bears are not yet getting follow-through selling. Therefore, the bear flag so far is failing.<\/li><li>The bulls are hoping that the EURUSD is in a Small Pullback Bull Trend after a sell climax in a support zone (see weekly chart above). If there is a breakout above the November 18 and November 30 double top, a measured move up would be back to near the bottom of the yearlong trading range.&nbsp;<\/li><li>A strong breakout above the double top would likely be the start of a couple of months of sideways to up trading.<\/li><li>Friday was a bull doji which is a weak buy signal bar for a High 1 in a Small Pullback Bull Trend.<\/li><li>The bears are hoping that this rally will fail and that the yearlong bear trend will resume.<\/li><li>If the current reversal is more sideways, there could be a new low. <\/li><li>However, with the chart in a 7-year trading range, traders still expect a couple of months of sideways to up trading to begin soon, whether or not there is a brief break below the 3-week trading range.&nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"6-sampp500-emini-futures\">S&amp;P500 Emini futures<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"7-the-monthly-emini-chart\">The <em>Monthly<\/em> Emini chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Monthly-Nov-Bear-Reversal-Bar-Closing-Near-Low.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Monthly-Nov-Bear-Reversal-Bar-Closing-Near-Low.png\" alt=\"sp500 Emini MOnthly Chart November Bear Reversal Bar Closing Near Low\" class=\"wp-image-139031\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Monthly-Nov-Bear-Reversal-Bar-Closing-Near-Low.png 1920w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Monthly-Nov-Bear-Reversal-Bar-Closing-Near-Low-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Monthly-Nov-Bear-Reversal-Bar-Closing-Near-Low-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Monthly-Nov-Bear-Reversal-Bar-Closing-Near-Low-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Monthly-Nov-Bear-Reversal-Bar-Closing-Near-Low-1536x864.png 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>The November monthly Emini candlestick was a bear bar. It closed near its low with a long tail above, and it also closed below October high. <\/li><li>It is a sell signal bar for a failed breakout above the Sept-Oct OO (outside-outside) pattern. <\/li><li>If there is a selloff and it breaks below the OO, that would trigger an OO sell signal. <\/li><li>But because the bull trend is so strong, it is a minor sell signal. That means the best the bears can probably get is 2 or 3 sideways to down bars to maybe a little below the October low. <\/li><li>However, when there is a reversal from an extreme buy climax, the market often enters a trading range. For example, the Emini went sideways for 2 years after the January 2018 buy climax.<\/li><li>The bulls hope that December reverses up to a new high before the end of the year. If it did, it would be an outside up bar, which is bullish.<\/li><li>However, it would be the 3<sup>rd<\/sup> leg up since September, and a third leg up often attracts profit takers. In this case, it would also be a micro wedge. <\/li><li>Therefore, while the Emini might make a new high in December or early in 2022, it probably will not last long. There is better than a 50% chance of at least a couple months sideways to down trading beginning within the next few months. It might have already begun.<\/li><li>Al said that when October formed a big bear bar, that there should be a 2<sup>nd<\/sup> bear bar within 2 months. Sometimes it comes in the 3<sup>rd<\/sup> month. November became that 2<sup>nd<\/sup> bear bar.<\/li><li>The bears see November as a reasonable sell signal bar as it closed near its low. They want a strong reversal down from a failed OO buy signal.<\/li><li>The bulls want the Emini to resume up in a Small Pullback Bull Trend.<\/li><li>Al mentioned that the year opened on its low and it is now near its high. On the yearly chart (Al will show the chart in early January), 2021 is a big bull bar that currently has a small tail above.<\/li><li>Most big bull bars have conspicuous tails on top (in this case, 1 bar on the yearly chart is 1 year). It usually comes from a pullback just before the bar closes. That is why Al said that there was an increased chance of a reversal in December. Bars often change their appearance just before they close, and what happens in December is just before the 2021 bar closes on the yearly chart.<\/li><li>The computers know this tendency. Bull computers will try to overwhelm the bear computers and get the year to close on its high. That could even lead to a gap up in January, which would create a gap up on the daily, monthly and yearly charts. With the final trading day of 2021 being a Friday, there would also be a gap up on the weekly chart.<\/li><li>Therefore, there is an increased chance of a big move in either direction in December.<\/li><li>If the year closes on its high, there will be an increased chance of higher prices early next year.<\/li><li>But if December is a bear bar closing near its low on the monthly chart, the new year will probably trade down.<\/li><li>The strong bull trend should soon transition into a trading range for several months and possibly longer.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"8-the-weekly-sampp500-emini-futures-chart\">The <em>Weekly<\/em> S&amp;P500 Emini futures chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Weekly-Bear-Follow-Through-Testing-Bull-Trend-Line.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Weekly-Bear-Follow-Through-Testing-Bull-Trend-Line.png\" alt=\"SP500 Weekly Chart Bear Follow Through Testing Bull Trend Line\" class=\"wp-image-139034\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Weekly-Bear-Follow-Through-Testing-Bull-Trend-Line.png 1920w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Weekly-Bear-Follow-Through-Testing-Bull-Trend-Line-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Weekly-Bear-Follow-Through-Testing-Bull-Trend-Line-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Weekly-Bear-Follow-Through-Testing-Bull-Trend-Line-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Weekly-Bear-Follow-Through-Testing-Bull-Trend-Line-1536x864.png 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>This week\u2019s Emini weekly candlestick was the 2nd consecutive big bear bar closing near its low. That is a Bear Surprise, which typically will lead to at least slightly lower prices within a few bars.<\/li><li>The prominent tail below indicates the bears are not as strong as they could have been.<\/li><li>The bears need to break the bull trend line with a consecutive bear bars closing near their low to convince traders that a correction is underway. Below that bull trend line, the next target for the bears is the Oct low.<\/li><li>The current sell-off is in a support zone. It is around a 50% pullback, near the bottom of the bull channel, and testing the September 2 high. <\/li><li>Since it has not quite reached the bear trend line, many traders may not buy aggressively until they believe the support has been adequately tested.<\/li><li>Is this the start of a correction? The Emini has been in a strong bull trend since the pandemic crash. There have been a few times when the bears got the probability of a correction up to 50%, but never more. If there is follow-through selling next week, this will be another one of those times.<\/li><li>The probability of higher prices has been between 50 and 60% during this entire bull trend. It has never been below 50%. That continues to be true.<\/li><li>The strong selloffs like in September in 2020 and again 2021 push the probability for the bears up to 50%. But every prior reversal has failed, and the bears never had better than a 50% chance of a trend reversal.<\/li><li>If the bulls get a strong reversal up next week, the probability of a new high by the end of the year will be again back to 60%.<\/li><li>Odds slightly favor sideways to down next week, but a strong reversal back up can come at any moment as the Emini is still in a Small Pullback Trend.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"9-the-daily-sampp500-emini-futures-chart\">The <em>Daily<\/em> S&amp;P500 Emini futures chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Daily-Pullback-Testing-100-Day-MA-Bull-Trend-Line.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Daily-Pullback-Testing-100-Day-MA-Bull-Trend-Line.png\" alt=\"SP500 Emini Daily Chart Pullback Testing 100-Day MA &amp; Bull Trend Line\" class=\"wp-image-139037\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Daily-Pullback-Testing-100-Day-MA-Bull-Trend-Line.png 1920w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Daily-Pullback-Testing-100-Day-MA-Bull-Trend-Line-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Daily-Pullback-Testing-100-Day-MA-Bull-Trend-Line-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Daily-Pullback-Testing-100-Day-MA-Bull-Trend-Line-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Daily-Pullback-Testing-100-Day-MA-Bull-Trend-Line-1536x864.png 1536w\" sizes=\"auto, (max-width: 1920px) 100vw, 1920px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li>The current pullback is around a 50% pullback from the Oct rally. It is also around the 50-day and 100-day moving averages and just above the bull trend line which are support zones. <\/li><li>Finally, it dipped below the September 2 high, which was likely. Al has said several times in November that the Emini would do that because it is a breakout point and there was a buy climax. The October rally could still be part of the trading range that began in July.<\/li><li>While it is not obvious, this selloff is a micro wedge, which increases the chance of a reversal up. There are 2 ways to look at this as a micro wedge.<\/li><li>For the 1<sup>st<\/sup> interpretation, the 1<sup>st<\/sup> push down was on Tuesday. Wednesday opened near Tuesday&#8217;s high and sold off again for a 2<sup>nd <\/sup>push down. Friday made a new low and it was a 3<sup>rd<\/sup> push down.<\/li><li>The 2<sup>nd<\/sup> interpretations is that the micro wedge began 7 days ago. Then, Friday is the breakout below the wedge. <\/li><li>These repeated failed attempts down are a problem for the bears. They might give up. If they do, the year could still close at a new high. <\/li><li>However, if the Emini breaks strongly below the micro wedge low (Friday&#8217;s low, which was also the week&#8217;s low), traders should expect about a measured move down. That is almost exactly at the October low and almost exactly a 10% correction. Both of these targets are magnets.<\/li><li>The bulls want this selloff to fail. If next week breaks below the micro wedge, traders should understand that breakouts below wedges fail about 50% of the time.<\/li><li>If there is a strong breakout with strong follow-through selling, the probability of a test of the October low before there is a new high will be 50%.<\/li><li>We will find out next week. A strong reversal up will probably lead to a test of the all-time high by the end of the year. A strong selloff next will will probably lead to a test of the October low.<\/li><li>In situations like this, the market often goes sideways for several days before deciding on the direction.<\/li><li>It has been sideways for 3 days. <\/li><li>Friday was a big outside day. The day after an outside down often is an inside day. If that happens on Monday, there would be an ioi (inside-outside-inside) pattern, which is Breakout Mode. Monday would be both a buy and sell signal bar. <\/li><li>It is important to understand that the 1<sup>st<\/sup> breakout of a Breakout Mode pattern fails and reverses 50% of the time. <\/li><li>In any case, next week should give traders an idea of what to expect for the rest of 2021&#8230; up, down, or mostly sideways.<\/li><li>Al has been saying that the Emini might just go sideways before deciding between going up to the high or down to the October low. <\/li><li>When the chart is not clear, it usually goes sideways. It could be sideways for a few days or a month or two.<\/li><li>At the moment, the chart is not clear. The Emini has been reversing every day or two.<\/li><li>Consecutive big bull bars would swing the odds back in the bull\u2019s favor, while consecutive big bear bars would increase the bear\u2019s odds of a deeper pullback.<\/li><li>Traders will be monitoring whether the bears can break below the confluence of support at around the 4500 Big Round Number.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"10-trading-room\">Trading Room<\/h2>\n\n\n\n<p>Traders can see the end of the day <a rel=\"noreferrer noopener\" href=\"http:\/\/www.brookspriceaction.com\/profile.php?mode=profil&amp;sub=profile_prefer&amp;mod=0\" target=\"_blank\">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 <a rel=\"noreferrer noopener\" class=\"rank-math-link\" href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\" target=\"_blank\">trading room<\/a>. We offer a <a rel=\"noreferrer noopener\" href=\"http:\/\/www.brookspriceaction.com\/portal.php?page=11\" target=\"_blank\">2 day free trial<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"11-weekly-reports-archive\">Weekly Reports Archive<\/h3>\n\n\n\n<p>You can access all weekly reports on the <a rel=\"noreferrer noopener\" class=\"rank-math-link\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/analysis\/\" target=\"_blank\">Market Analysis<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Al added some comments to report Market Overview: Weekend Market Analysis The SP500 Emini futures traded below November&#8217;s low on the monthly chart following a failed OO (Outside-Outside) pattern. Since the bull trend is strong, this is a minor sell signal with an Emini bear follow through bar. There are several support zones around the [&hellip;]<\/p>\n","protected":false},"author":2836,"featured_media":139034,"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":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[136],"tags":[1382,281,60,1381],"class_list":{"0":"post-138806","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-analysis","8":"tag-bear-follow-through","9":"tag-eurusd-forex","10":"tag-sp-emini","11":"tag-testing-support","12":"entry","13":"override","14":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/12\/Emini-Weekly-Bear-Follow-Through-Testing-Bull-Trend-Line.png","author_info":{"display_name":"Andrew","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/andrewa\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/138806","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/users\/2836"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=138806"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/138806\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media\/139034"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=138806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=138806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=138806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}