![\"emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/12\/m-1.png\" "\\"\\"")
<\/a><\/p>\nThe monthly S&P500 Emini futures candlestick chart has a bull trend bar this month. This is therefore good follow-through buying after last month’s big outside up bar.<\/p>\n
The monthly S&P500 Emini futures candlestick chart closed at a new all-time monthly high close in November. This month is currently a bull bar that is trading at the high. This is good follow-through buying. If the month closes near its high, it would therefore increase the chances of higher prices in January.<\/p>\n
While there are 3 pushes up this year, they are in a tight bull channel. In addition, the pullback from the 2nd rally was deep. This therefore makes a parabolic wedge top unlikely. In addition, the tight bull channel makes any reversal down likely to be minor. As a result, the bears will probably need at least a micro double top before they can create a reversal. Less likely, the can begin a reversal with a big bear bar or a series of bear bars. The odds favor higher prices.<\/p>\n
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Weekly S&P500 Emini futures candlestick chart:
Strong bull breakout to a new all-time high<\/h2>\n
The weekly S&P500 Emini futures candlestick chart formed a big bull trend bar this week.<\/p>\n The weekly S&P500 Emini futures candlestick chart is breaking strongly to a new high. Because last week was a bear bar, the odds were that this week would not be a big bull week. Yet it was. Hence, the odds are that the Emini will go higher. <\/p>\n Whenever a market does something that is unlikely, it traps traders. Bulls get trapped out because they wanted to buy a pullback and therefore did not buy the breakout. Bears expected sellers above last week and sold. Hence, they are trapped in a losing trade. Both bulls and bears will use any pullback to buy. As a result, there will probably be at least one more small leg up after the next reversal attempt.<\/p>\n Never assume that low probability events have no probability. While it is unlikely that next week will be a big bear bar and reverse this week’s rally, there is a 30% chance that it will. Therefore traders have to be willing to sell if a clear, strong reversal develops. <\/p>\n <\/p>\n The daily S&P500 Emini futures candlestick chart broke strongly to a new all-time high on Wednesday. In addition, Thursday was a bull bar that closed near its high. That follow-through buying therefore increased the odds of higher prices over the next week or two.<\/p>\n \nThursday and Friday have smaller bodies. Hence, the breakout is weakening. This therefore increases the chances of at least a small pullback next week. Furthermore, Wednesday is an FOMC meeting. The Emini will probably go sideways into the report. <\/p>\n The daily S&P500 Emini futures candlestick chart broke strongly to a new all-time high this week. Furthermore, there was good follow-through buying. As a result, even if there is a pullback this week, the odds are that the Emini will go higher for at least the next week or two.<\/p>\n Because there is a 90% chance of a Fed interest rate hike, the raise in rates will not surprise traders. Yet, if the Fed says that it plans many more increases in 2017, that would be a surprise. Therefore there is a potential of a big move down immediately after the report. <\/p>\n Traders are expecting a big move on Wednesday. There is a 50% chance that it will be up. In addition, there is a 50% chance it will be down. Since the Emini will be in Breakout Mode, there is also a 50% chance that the 1st breakout will reverse. <\/p>\n As always, traders will respect the bear case. Wednesday’s FOMC meeting is especially relevant. It is a catalyst that can lead to a big move up or down. Yet, because the bull breakout was so strong, the odds are that a bear reversal will probably be minor. That means that it would more likely become a bull flag than the start of a bear trend.<\/p>\n <\/p>\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>. We offer a 2 day free trial<\/a>.<\/p>\n<\/a><\/p>\nDaily S&P500 Emini futures candlestick chart:
Strong bull breakout and good follow-through buying.<\/h2>\n<\/a><\/p>\nWednesday’s FOMC meeting and probable interest rate hike<\/h3>\n