The Weekly<\/em> S&P 500 Emini chart<\/h3>\n\n\n\n![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/07\/Emini-Weekly-Wedge-Embedded-Wedge-Climactic-Rally-680x383.jpg\" "\\"\\"")
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n\n- This\u00a0week\u2019s\u00a0Emini candlestick\u00a0<\/a>was a bull bar closing around the middle of its range with a long tail above.<\/li>\n\n\n\n
- Last week<\/a>, we said that odds slightly favor the market to still be in the sideways to up phase and there are no signs of strong bears yet.<\/li>\n\n\n\n
- The market traded higher into new all-time high territory but closed off its high.<\/li>\n\n\n\n
- The bulls hope\u00a0that the\u00a0rally will lead to months of sideways to up trading (broad bull channel).\u00a0<\/li>\n\n\n\n
- They want to get\u00a0another strong leg up\u00a0completing\u00a0the wedge pattern\u00a0with\u00a0the first two legs being\u00a0July 27\u00a0and\u00a0March 21. The third leg up is currently underway.<\/li>\n\n\n\n
- They also got another leg up in the last two weeks, creating an embedded wedge in the third leg up (May 23, Jun 28, and Jul 12).<\/li>\n\n\n\n
- If the market trades lower, they want the pullback to form a higher low or a double bottom bull flag (with\u00a0the May 31 or the April 19\u00a0low) followed by a resumption of the broad bull channel.<\/li>\n\n\n\n
- They want the 20-week EMA or the bull trend line to act as support.<\/li>\n\n\n\n
- The bears want a reversal from a higher high\u00a0major\u00a0trend reversal, a wedge pattern (Jul 27, Mar 21 and Jul 12) and a trend channel line overshoot.<\/li>\n\n\n\n
- They also see an embedded wedge in the current leg up (May 23, Jun 28, and Jul 12) and a possible final flag pattern (sideways consolidation from the mid to the end of Jun).<\/li>\n\n\n\n
- They want a TBTL (Ten Bars, Two Legs) pullback trading far below the 20-week EMA.<\/li>\n\n\n\n
- At the very least, they want a retest of the\u00a0April 19\u00a0low, even if it forms a higher low.<\/li>\n\n\n\n
- The problem with the bear\u2019s case is that they have not been able to create strong bear bars with follow-through selling.<\/li>\n\n\n\n
- The bears need to create bear bars with follow-through selling to convince traders that they are at least temporarily back in control.<\/li>\n\n\n\n
- Because of the strong move-up, the bears will need a strong reversal bar or at least a micro double top to increase the odds of a deeper pullback.<\/li>\n\n\n\n
- Since this\u00a0week\u2019s\u00a0candlestick is\u00a0a bull bar closing around the middle of its range with a long tail above, it can be a sell signal bar albeit weaker.\u00a0<\/li>\n\n\n\n
- The move is becoming slightly climactic and overbought. Traders are looking for reasons to take profits off the table.<\/li>\n\n\n\n
- The risk of a minor pullback and profit-taking event is elevated.<\/li>\n\n\n\n
- However, the bears still need to show that they are at least temporarily back in control by creating a few consecutive bear bars. Until they can do that, traders will not be willing to sell aggressively.<\/li>\n\n\n\n
- For now, the market remains Always In Long. The odds continue to slightly favor sideways to up.<\/li>\n\n\n\n
- Opening swing long positions at the current elevated levels might not be the best action to take.<\/li>\n\n\n\n
- Instead, traders might want to trim or take some profits and only look to buy on a pullback (probably towards the 20-week EMA).<\/li>\n\n\n\n
- Traders will see if the market can continue the sideways to up buy climax for another 1-3 weeks.<\/li>\n\n\n\n
- Or will the bears be able to create a strong entry bar with follow-through selling instead?<\/li>\n\n\n\n
- Traders are looking for signs of a loss of momentum in the weeks ahead.<\/li>\n<\/ul>\n\n\n\n
The Daily<\/em> S&P 500 Emini chart<\/h3>\n\n\n\n![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/07\/Emini-Daily-Embedded-Wedge-Final-Flag-Buy-Climax-680x383.jpg\" "\\"\\"")
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n\n- The market traded higher on Wednesday in a 7-bar bull microchannel. Thursday formed an outside bear bar but there was no follow-through selling. Friday made a new all-time high but reversed to close off its high.<\/li>\n\n\n\n
- Last week<\/a>, we said that odds continue to slightly favor sideways to up. If the market continues up in a vertical type of trading in the weeks ahead, traders should be prepared for a buy climax followed by a couple of weeks of pullback.<\/li>\n\n\n\n
- So far, the move up since July 1 has the appearance of a buy climax.<\/li>\n\n\n\n
- The bears want a reversal from a higher high\u00a0major\u00a0trend reversal and a large wedge pattern (Jul 27, Mar 21 and Jul 12).<\/li>\n\n\n\n
- They want a reversal from a wedge in the current leg up (May 23, Jun 28, and Jul 12) and from a final flag pattern (starting from the second half of Jun).<\/li>\n\n\n\n
- They want a two-legged pullback lasting at least a few weeks.<\/li>\n\n\n\n
- At the very least, they want\u00a0a retest of the\u00a0April 19\u00a0low,\u00a0even if it only forms a higher low.<\/li>\n\n\n\n
- The problem with the Bears case is that they have not yet been able to create consecutive bar bars with follow-through selling.<\/li>\n\n\n\n
- They need to create consecutive bear bars closing near their lows with follow-through selling to increase the odds of a deeper pullback.<\/li>\n\n\n\n
- The bulls hope\u00a0that\u00a0the\u00a0current rally will form a spike and (broader) channel\u00a0which\u00a0will last for many months.\u00a0<\/li>\n\n\n\n
- They got another strong leg up creating a wedge pattern in the current leg (May 23, Jun 28, and Jul 12).<\/li>\n\n\n\n
- If a pullback forms, they want a reversal\u00a0from a double bottom bull flag (with\u00a0either May 31 or April 19 lows) and a higher low, followed by a resumption of the broad bull channel.<\/li>\n\n\n\n
- They want the 20-day EMA or the bull trend line to act as support.<\/li>\n\n\n\n
- So far, the market continues to trade sideways to up with not much selling pressure. The market remains Always In Long.<\/li>\n\n\n\n
- Until the bears start creating strong bear bars with follow-through selling, traders will not be willing to sell aggressively.<\/li>\n\n\n\n
- The market appears to be moving up in a vertical type of trading with very little selling pressure (buy climax).<\/li>\n\n\n\n
- However, the move is becoming slightly climactic and overbought. The odds of at least a small pullback are increasing.<\/li>\n\n\n\n
- If there is a pullback, traders will see the strength of the pullback. If it is sideways with poor follow-through selling, the odds of another leg higher will increase.<\/li>\n\n\n\n
- If instead, the bears start getting big consecutive bear bars closing near their lows, it would likely signal the start of a two-legged sideways-to-down pullback phase.<\/li>\n\n\n\n
- Traders will be watching for signs of unsustainable behaviours such as:<\/li>\n\n\n\n
- Big consecutive bull bars closing near their highs late in a trend, or;<\/li>\n\n\n\n
- Bull microchannel (or tight bull channel) which is losing momentum (moving more sideways instead of up).<\/li>\n\n\n\n
- For now, traders will see if the bulls can continue to create more follow-through buying or\u00a0will the market form a minor pullback.<\/li>\n\n\n\n
- Sometimes, a buy climax can last slightly longer than traders expect it to.<\/li>\n<\/ul>\n\n\n\n
Trading room<\/h2>\n\n\n\n
Al Brooks and other presenters talk about the detailed Emini price action real-time each 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
![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/07\/Emini-Weekly-Wedge-Embedded-Wedge-Climactic-Rally.jpg\" "\\"\\"")
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n
- \n
- This\u00a0week\u2019s\u00a0Emini candlestick\u00a0<\/a>was a bull bar closing around the middle of its range with a long tail above.<\/li>\n\n\n\n
- Last week<\/a>, we said that odds slightly favor the market to still be in the sideways to up phase and there are no signs of strong bears yet.<\/li>\n\n\n\n
- The market traded higher into new all-time high territory but closed off its high.<\/li>\n\n\n\n
- The bulls hope\u00a0that the\u00a0rally will lead to months of sideways to up trading (broad bull channel).\u00a0<\/li>\n\n\n\n
- They want to get\u00a0another strong leg up\u00a0completing\u00a0the wedge pattern\u00a0with\u00a0the first two legs being\u00a0July 27\u00a0and\u00a0March 21. The third leg up is currently underway.<\/li>\n\n\n\n
- They also got another leg up in the last two weeks, creating an embedded wedge in the third leg up (May 23, Jun 28, and Jul 12).<\/li>\n\n\n\n
- If the market trades lower, they want the pullback to form a higher low or a double bottom bull flag (with\u00a0the May 31 or the April 19\u00a0low) followed by a resumption of the broad bull channel.<\/li>\n\n\n\n
- They want the 20-week EMA or the bull trend line to act as support.<\/li>\n\n\n\n
- The bears want a reversal from a higher high\u00a0major\u00a0trend reversal, a wedge pattern (Jul 27, Mar 21 and Jul 12) and a trend channel line overshoot.<\/li>\n\n\n\n
- They also see an embedded wedge in the current leg up (May 23, Jun 28, and Jul 12) and a possible final flag pattern (sideways consolidation from the mid to the end of Jun).<\/li>\n\n\n\n
- They want a TBTL (Ten Bars, Two Legs) pullback trading far below the 20-week EMA.<\/li>\n\n\n\n
- At the very least, they want a retest of the\u00a0April 19\u00a0low, even if it forms a higher low.<\/li>\n\n\n\n
- The problem with the bear\u2019s case is that they have not been able to create strong bear bars with follow-through selling.<\/li>\n\n\n\n
- The bears need to create bear bars with follow-through selling to convince traders that they are at least temporarily back in control.<\/li>\n\n\n\n
- Because of the strong move-up, the bears will need a strong reversal bar or at least a micro double top to increase the odds of a deeper pullback.<\/li>\n\n\n\n
- Since this\u00a0week\u2019s\u00a0candlestick is\u00a0a bull bar closing around the middle of its range with a long tail above, it can be a sell signal bar albeit weaker.\u00a0<\/li>\n\n\n\n
- The move is becoming slightly climactic and overbought. Traders are looking for reasons to take profits off the table.<\/li>\n\n\n\n
- The risk of a minor pullback and profit-taking event is elevated.<\/li>\n\n\n\n
- However, the bears still need to show that they are at least temporarily back in control by creating a few consecutive bear bars. Until they can do that, traders will not be willing to sell aggressively.<\/li>\n\n\n\n
- For now, the market remains Always In Long. The odds continue to slightly favor sideways to up.<\/li>\n\n\n\n
- Opening swing long positions at the current elevated levels might not be the best action to take.<\/li>\n\n\n\n
- Instead, traders might want to trim or take some profits and only look to buy on a pullback (probably towards the 20-week EMA).<\/li>\n\n\n\n
- Traders will see if the market can continue the sideways to up buy climax for another 1-3 weeks.<\/li>\n\n\n\n
- Or will the bears be able to create a strong entry bar with follow-through selling instead?<\/li>\n\n\n\n
- Traders are looking for signs of a loss of momentum in the weeks ahead.<\/li>\n<\/ul>\n\n\n\n
The Daily<\/em> S&P 500 Emini chart<\/h3>\n\n\n\n
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n- \n
- The market traded higher on Wednesday in a 7-bar bull microchannel. Thursday formed an outside bear bar but there was no follow-through selling. Friday made a new all-time high but reversed to close off its high.<\/li>\n\n\n\n
- Last week<\/a>, we said that odds continue to slightly favor sideways to up. If the market continues up in a vertical type of trading in the weeks ahead, traders should be prepared for a buy climax followed by a couple of weeks of pullback.<\/li>\n\n\n\n
- So far, the move up since July 1 has the appearance of a buy climax.<\/li>\n\n\n\n
- The bears want a reversal from a higher high\u00a0major\u00a0trend reversal and a large wedge pattern (Jul 27, Mar 21 and Jul 12).<\/li>\n\n\n\n
- They want a reversal from a wedge in the current leg up (May 23, Jun 28, and Jul 12) and from a final flag pattern (starting from the second half of Jun).<\/li>\n\n\n\n
- They want a two-legged pullback lasting at least a few weeks.<\/li>\n\n\n\n
- At the very least, they want\u00a0a retest of the\u00a0April 19\u00a0low,\u00a0even if it only forms a higher low.<\/li>\n\n\n\n
- The problem with the Bears case is that they have not yet been able to create consecutive bar bars with follow-through selling.<\/li>\n\n\n\n
- They need to create consecutive bear bars closing near their lows with follow-through selling to increase the odds of a deeper pullback.<\/li>\n\n\n\n
- The bulls hope\u00a0that\u00a0the\u00a0current rally will form a spike and (broader) channel\u00a0which\u00a0will last for many months.\u00a0<\/li>\n\n\n\n
- They got another strong leg up creating a wedge pattern in the current leg (May 23, Jun 28, and Jul 12).<\/li>\n\n\n\n
- If a pullback forms, they want a reversal\u00a0from a double bottom bull flag (with\u00a0either May 31 or April 19 lows) and a higher low, followed by a resumption of the broad bull channel.<\/li>\n\n\n\n
- They want the 20-day EMA or the bull trend line to act as support.<\/li>\n\n\n\n
- So far, the market continues to trade sideways to up with not much selling pressure. The market remains Always In Long.<\/li>\n\n\n\n
- Until the bears start creating strong bear bars with follow-through selling, traders will not be willing to sell aggressively.<\/li>\n\n\n\n
- The market appears to be moving up in a vertical type of trading with very little selling pressure (buy climax).<\/li>\n\n\n\n
- However, the move is becoming slightly climactic and overbought. The odds of at least a small pullback are increasing.<\/li>\n\n\n\n
- If there is a pullback, traders will see the strength of the pullback. If it is sideways with poor follow-through selling, the odds of another leg higher will increase.<\/li>\n\n\n\n
- If instead, the bears start getting big consecutive bear bars closing near their lows, it would likely signal the start of a two-legged sideways-to-down pullback phase.<\/li>\n\n\n\n
- Traders will be watching for signs of unsustainable behaviours such as:<\/li>\n\n\n\n
- Big consecutive bull bars closing near their highs late in a trend, or;<\/li>\n\n\n\n
- Bull microchannel (or tight bull channel) which is losing momentum (moving more sideways instead of up).<\/li>\n\n\n\n
- For now, traders will see if the bulls can continue to create more follow-through buying or\u00a0will the market form a minor pullback.<\/li>\n\n\n\n
- Sometimes, a buy climax can last slightly longer than traders expect it to.<\/li>\n<\/ul>\n\n\n\n
Trading room<\/h2>\n\n\n\n
Al Brooks and other presenters talk about the detailed Emini price action real-time each 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
- Last week<\/a>, we said that odds slightly favor the market to still be in the sideways to up phase and there are no signs of strong bears yet.<\/li>\n\n\n\n