{"id":36008,"date":"2015-02-26T05:51:59","date_gmt":"2015-02-26T13:51:59","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=36008"},"modified":"2015-02-26T14:10:34","modified_gmt":"2015-02-26T22:10:34","slug":"emini-february-26-2015-wedge-top-so-an-abc-pullback","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/market-update\/emini-february-26-2015-wedge-top-so-an-abc-pullback\/","title":{"rendered":"Intraday market update, February 26, 2015:
Wedge top so an ABC pullback"},"content":{"rendered":"

Posted 6:50 a.m.<\/p>\n

Yesterday ended with a sell climax and a brief strong rally. The bulls are hoping for a major trend reversal up. However, because the 60 minute wedge top is clear and in an overbought 60 minute and daily chart, any rally on the 5 minute chart will probably form a major trend reversal top on the 60 minute chart.<\/p>\n

Most days over the past month have begun with trading ranges that have lasted about an hour. Yesterday ended with a trading range and it might continue. There was enough buying pressure at the end of yesterday and the start of today to make a rally likely. There might be some follow-through selling, but the odds favor a couple of hours of sideways to up trading before the 60 minute bars try for their 2nd leg down. <\/p>\n

Yesterday was a sell signal bar on the daily chart, but it was a doji and it followed 10 bull bars. This makes it a bad sell setup and means that there will probably be buyers below yesterday’s low.<\/p>\n

Although yesterday ended with an attempt to become always in long, it was not strong enough. However, there was enough buying pressure to make a 2 hour rally likely today, and to make bears hesitant to sell too low, unless there is a strong bear breakout with follow-through. The bears might get a swing trade in the 2nd half of the day. The bulls have a chance for a swing trade up within the first hour or two.<\/p>\n

My thoughts before the open: 60 minute wedge top so an ABC pullback is likely<\/h3>\n

Yesterday triggered a sell from a 60 minute wedge top so an ABC pullback is likely. This means that the 60 minute chart should begin to have a 2nd leg down after any bounce today. The pattern is big, and there is a wedge on 2 – 4 hour charts as well, so the TBTL Ten Bars, Two Legs down will probably form on those charts, not simply on the 60 minute chart. I always look at the highest time frame where the pattern is still clear, and I then look for TBTL on that time frame. <\/p>\n

Since the market had 10 consecutive bull trend days, it is strong and it is more likely to enter a small trading range, maybe even for a month, than it is to go straight down from here. Although is could continue up, the 60 minute wedge top makes sideways to down more likely for at least several days.<\/p>\n

Summary of today’s price action and what to expect tomorrow<\/h2>\n

\"Emini<\/a><\/p>\n

The Emini traded below yesterday’s low on the open and reversed up from a lower low major trend reversal. It failed 2 more times to get above the top of the trading range from the end of yesterday and then broke below a bear triangle. It reversed up from the low of the day and from 2 trend channel lines.<\/p>\n

Today was likely to trade below yesterday’s low because yesterday’s candle on the daily chart was a sell signal. However, the rally of the past 3 weeks has been so strong that it was likely to create buyers below yesterday’s low. After a brief selloff, the bulls reversed the market up from a lower low major trend reversal.<\/p>\n

The bulls twice tried and failed to break above the trading range. The market then tried the other direction and fell to a new low of the day. The selloff had bad follow-through all of the way down, which made it more likely a bear leg in a trading range. Bulls were finally able to buy a reversal up, which tested the apex of the triangle.<\/p>\n

The bulls hope that this reversal and the 60 minute gap bar (high below the moving average) results in a resumption of the bull trend. However, traders who are learning how to trade the market should remember that a gap bar usually leads to the final rally before a major trend reversal down triggers. The bulls want to break strongly above the trading range. The bears want a double top at the top of the range and then a 2nd leg down on the 60 minute chart after yesterday’s wedge top triggered.<\/p>\n

Tomorrow is Friday and weekly magnets can be important. The low of the week is 2099.75 and the open of the week is 2104.50. Last week’s high is 2108.75.<\/p>\n

Tomorrow is also the last trading day of the month. The only magnet that is close is the December high of 2088.85.<\/p>\n

See the weekly update<\/a> for a discussion of the weekly chart and for what to expect going into next week.<\/p>\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. I talk about the detailed Emini price action real-time throughout the day in the BrooksPriceAction.com trading room<\/a>, and a 2 day free trial<\/a> is available.<\/p>\n

When I mention time, it is USA Pacific Standard Time (the Emini day session opens at 6:30 am PST, and closes at 1:15 pm PST). You can read background information on the intraday market reports on the Intraday Market Update<\/a> page.<\/p>\n

\n","protected":false},"excerpt":{"rendered":"

Posted 6:50 a.m. Yesterday ended with a sell climax and a brief strong rally. The bulls are hoping for a major trend reversal up. However, because the 60 minute wedge top is clear and in an overbought 60 minute and daily chart, any rally on the 5 minute chart will probably form a major trend […]<\/p>\n","protected":false},"author":4,"featured_media":0,"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":"","_genesis_layout":"","footnotes":""},"categories":[153],"tags":[],"class_list":{"0":"post-36008","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-market-update","7":"entry","8":"has-post-thumbnail","9":"override"},"featured_image_src":null,"author_info":{"display_name":"Al","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/albrooks\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/36008","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\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=36008"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/36008\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=36008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=36008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=36008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}