S&P500 Emini futures<\/h2>\n\n\n\nThe Monthly<\/em> Emini chart<\/h3>\n\n\n\n![\"SP500](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/07\/Emini-Monthly-June-Bear-Bar-Closing-Below-May-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n- The\u00a0June monthly Emini candlestick<\/a>\u00a0was a big bear bar with long tail below. June closed slightly below May low.<\/li>
- Last month, we said that odds slightly favor a test above May high and traders will be monitoring whether June closes as a strong bull bar above May, or a surprise bear bar closing near the low.<\/li>
- June never traded above May high and sold off below May low by the middle of the month.<\/li>
- The bears see the move down in June as the second leg down from the 1st<\/sup> leg in April. They want a measured move down to 3600 based on the height of the 9-month trading range height, or lower around 3450, based on the height of the 12-month trading range starting from May 2021.<\/li>
- Since June was a bear bar, it is a sell signal for July. However, the bear bar with long tail below indicates that the bears are not as strong as they could have been.<\/li>
- Bulls want the breakout below May low to fail and reverse back up. The bull\u2019s case of a failed breakout would have been stronger had June closed above May low and above the middle of the bar around 3910.<\/li>
- The bulls see the move down from the January top as a two-legged pullback. They want a reversal higher from a wedge bull flag (February 24, May 20 and June 17) and a trend channel line overshoot.<\/li>
- The Emini closed below the 20-month exponential moving average in June. The last 2 times this happened were during the sell-off in December 2018 and the Covid-19 sell-off in 2020. The Emini then reversed to close above the 20-month exponential moving average the following month.\u00a0<\/li>
- Will July be the same? Or will July be a consecutive close below the 20-month exponential moving average?<\/li>
- While the sell-off since January reached bear market territory (-20% from the high), there are value investors who are looking to buy these deep (-20%, -30%, -40%, -50%) pullbacks.<\/li>
- The candlesticks down from January to June also had a lot of overlapping bars. That indicates that the bears are not as strong as they could have been.<\/li>
- While the Emini may continue to trade slightly lower, odds are the Emini should not trade too far below 3400 which is around a -30% correction from the high.<\/li>
- The trend channel line overshoot in June also increases the odds of a pullback to begin within 1-2 months.<\/li><\/ul>\n\n\n\n
The Weekly<\/em> S&P 500 Emini chart<\/h3>\n\n\n\n![\"SP500](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/07\/Emini-Weekly-Weak-Bear-Bar-Deep-Pullback-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n- This week\u2019s Emini candlestick<\/a>\u00a0was a bear bar with long tail below.\u00a0<\/li>
- Last week, we said that odds favor the Emini to trade at least slightly higher and traders will be monitoring if the bulls get a consecutive bull bar (follow-through buying), something they have failed to do since April.<\/li>
- This week traded slightly higher, but the bulls failed to get a follow-through bar.<\/li>
- The bulls hope that this week was simply a deep pullback and wants another leg sideways to up. They want a failed breakout below the May low.<\/li>
- Bulls see a trend channel line overshoot, and a wedge bottom (Feb 24, May 20 and June 17). There is currently a 3-bar bull micro channel on the chart.<\/li>
- Bears want a continuation of the measured move down to 3600 or lower around 3450, based on the height of the 12-month trading range starting from May 2021.<\/li>
- The bears want the Emini to stall around or below the June 2 high, or the bear trend line and reverse lower from a double top bear flag.<\/li>
- They see the pullback last week as a 50% retracement of the first leg down.<\/li>
- The bears will need to create a follow-through bear bar next week. If they get that, odds of a re-test of June low and a breakout attempt increase.<\/li>
- Since this week was a bear bar, it is a sell signal bar for next week. However, the long tail below makes it a weaker sell signal bar.\u00a0<\/li>
- Can next week trade higher without trading below this week\u2019s low?<\/li>
- Yes, it is possible. It would be the second leg sideways to up of the pullback.<\/li>
- The bulls will need to create consecutive bull bars trading far above the June 2 high to convince traders that a reversal higher may be underway.<\/li>
- The trend channel line overshoot increases the odds of a 2-legged sideways to up pullback beginning within 1 to 3 weeks. The pullback phase may have started 2 weeks ago.<\/li><\/ul>\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. Al talks about the detailed Emini 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\nMarket analysis reports archive<\/h3>\n\n\n\n
![\"SP500](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/07\/Emini-Monthly-June-Bear-Bar-Closing-Below-May.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n- The\u00a0June monthly Emini candlestick<\/a>\u00a0was a big bear bar with long tail below. June closed slightly below May low.<\/li>
- Last month, we said that odds slightly favor a test above May high and traders will be monitoring whether June closes as a strong bull bar above May, or a surprise bear bar closing near the low.<\/li>
- June never traded above May high and sold off below May low by the middle of the month.<\/li>
- The bears see the move down in June as the second leg down from the 1st<\/sup> leg in April. They want a measured move down to 3600 based on the height of the 9-month trading range height, or lower around 3450, based on the height of the 12-month trading range starting from May 2021.<\/li>
- Since June was a bear bar, it is a sell signal for July. However, the bear bar with long tail below indicates that the bears are not as strong as they could have been.<\/li>
- Bulls want the breakout below May low to fail and reverse back up. The bull\u2019s case of a failed breakout would have been stronger had June closed above May low and above the middle of the bar around 3910.<\/li>
- The bulls see the move down from the January top as a two-legged pullback. They want a reversal higher from a wedge bull flag (February 24, May 20 and June 17) and a trend channel line overshoot.<\/li>
- The Emini closed below the 20-month exponential moving average in June. The last 2 times this happened were during the sell-off in December 2018 and the Covid-19 sell-off in 2020. The Emini then reversed to close above the 20-month exponential moving average the following month.\u00a0<\/li>
- Will July be the same? Or will July be a consecutive close below the 20-month exponential moving average?<\/li>
- While the sell-off since January reached bear market territory (-20% from the high), there are value investors who are looking to buy these deep (-20%, -30%, -40%, -50%) pullbacks.<\/li>
- The candlesticks down from January to June also had a lot of overlapping bars. That indicates that the bears are not as strong as they could have been.<\/li>
- While the Emini may continue to trade slightly lower, odds are the Emini should not trade too far below 3400 which is around a -30% correction from the high.<\/li>
- The trend channel line overshoot in June also increases the odds of a pullback to begin within 1-2 months.<\/li><\/ul>\n\n\n\n
The Weekly<\/em> S&P 500 Emini chart<\/h3>\n\n\n\n
<\/a><\/figure>\n\n\n\n- This week\u2019s Emini candlestick<\/a>\u00a0was a bear bar with long tail below.\u00a0<\/li>
- Last week, we said that odds favor the Emini to trade at least slightly higher and traders will be monitoring if the bulls get a consecutive bull bar (follow-through buying), something they have failed to do since April.<\/li>
- This week traded slightly higher, but the bulls failed to get a follow-through bar.<\/li>
- The bulls hope that this week was simply a deep pullback and wants another leg sideways to up. They want a failed breakout below the May low.<\/li>
- Bulls see a trend channel line overshoot, and a wedge bottom (Feb 24, May 20 and June 17). There is currently a 3-bar bull micro channel on the chart.<\/li>
- Bears want a continuation of the measured move down to 3600 or lower around 3450, based on the height of the 12-month trading range starting from May 2021.<\/li>
- The bears want the Emini to stall around or below the June 2 high, or the bear trend line and reverse lower from a double top bear flag.<\/li>
- They see the pullback last week as a 50% retracement of the first leg down.<\/li>
- The bears will need to create a follow-through bear bar next week. If they get that, odds of a re-test of June low and a breakout attempt increase.<\/li>
- Since this week was a bear bar, it is a sell signal bar for next week. However, the long tail below makes it a weaker sell signal bar.\u00a0<\/li>
- Can next week trade higher without trading below this week\u2019s low?<\/li>
- Yes, it is possible. It would be the second leg sideways to up of the pullback.<\/li>
- The bulls will need to create consecutive bull bars trading far above the June 2 high to convince traders that a reversal higher may be underway.<\/li>
- The trend channel line overshoot increases the odds of a 2-legged sideways to up pullback beginning within 1 to 3 weeks. The pullback phase may have started 2 weeks ago.<\/li><\/ul>\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. Al talks about the detailed Emini 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\nMarket analysis reports archive<\/h3>\n\n\n\n