![\"Brexit](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2017\/03\/EC-14.png\" "\\"\\"")
<\/a><\/p>\nThe 4 week rally on the daily chart has 3 pushes up. In addition, the 3rd push is subdividing and has a smaller 2nd push up within it. Because there is a gap after the 2nd push, there might be a successful break above bot lower highs. <\/p>\n
The bears have a wedge rally on the daily chart. Furthermore, it is now testing the top of the 5 month trading range. This is therefore the sell zone. Yet, there is no reversal down yet. In addition, there is a gap up after the 2nd leg up. Hence, that gap might lead to a measured move up. Hence, it could lead to a strong breakout above the neck lines of the bottom. It could therefore then lead to a test of the November top of the huge bear reversal down. <\/p>\n
Because the chart is still in a trading range, the odds still favor a continued trading range rather than a successful breakout. Yet, trading ranges often have small breakouts that fail before the next leg down begins. This is therefore an important area. It could lead to a 400 pip measured move up or a 300 pip sell off to test the March low. The bulls need a strong breakout to convince traders that the rally will continue up to the November 9 high.<\/p>\n
Overnight EURUSD Forex trading<\/h3>\n
The EURUSD 5 minute chart is near its high, but has been in a 20 pip range for 4 hours. Since it is near the top of a 5 month trading range, the bulls need a strong breakout. Without it, the odds favor a swing down to test the higher lows of the past 3 weeks.<\/p>\n
Since the momentum up in March has been strong and the bull channel has been tight, the bears probably will need a week or more of sideways trading before they can reverse the market down. Hence, the odds are for a trading range over the next week. Then traders will look for the big bull breakout or reversal down.<\/p>\n
<\/p>\n
Summary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n
The Emini sold off strongly for 2 hours. It then evolved into a broad bear channel.<\/p>\n The selloff today broke below the 2351.00 neck line of the double top on the daily chart. In addition, there is a 60% chance of a selloff to below the December close within 2 months. Hence, tomorrow is important. <\/p>\n Since consecutive big bear bars would increase the chances that the sell has begun, tomorrow’s close is important. The bears want a gap down and a big bear bar, but the bulls want a bull bar. Yet, even if the bulls win, today was so dramatic that the odds are that there will be at least some follow-through selling over the next couple of weeks, even if there is a strong rally this week.<\/p>\n <\/p>\n See the weekly update<\/a> for a discussion of the price action on the weekly candlestick chart and for what to expect going into next week.<\/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 S&P Emini futures 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>\n
\n