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![\"Monthly](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2018\/04\/m-2.png\" "\\"\\"")
<\/a><\/p>\nThe monthly S&P500 Emini futures candlestick chart so far this month has a bull reversal bar. If it closes near its high, it will be a strong buy signal bar for May.<\/p>\n
The monthly S&P500 Emini futures candlestick chart reversed up in April, as I have been saying was likely. There are still 6 trading days left, and there is plenty of time left for a strong reversal back down. However, after a 15 month bull micro channel, the odds have been for a bull flag that would end by the 3rd month. So far, this looks to be the case.<\/p>\n
But, because the stock market has never been as overbought in its 100 year history as it was in January,\u00a0 the correction could last 6 months. There is still only a 20% chance of a bear trend on the monthly chart without at least a small double top.<\/p>\n
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Weekly S&P500 Emini futures candlestick chart:
\nWeak Emini breakout above 2700 Big Round Number on strong earnings<\/h2>\n
The weekly S&P500 Emini futures candlestick chart had a bear doji this week. It is a weak sell signal for next week.<\/p>\n The weekly S&P500 Emini futures candlestick chart has been in a tight trading range for 4 weeks. It is also in the middle of a 3 month trading range. This means that it is searching for direction.<\/p>\n This week was a doji bear reversal bar, which is a weak sell signal for next week. Consequently, next week will probably be another small bar, similar to the past 4 weeks.<\/p>\n Because there was a strong bull trend prior to this 3 month trading range, the odds still favor a bull breakout. However, the weekly chart needs consecutive strong trend bars up or down before traders believe that the trading range is converting into a trend.<\/p>\n <\/p>\n The daily S&P500 Emini futures candlestick chart is pulling back from a breakout above a four week island bottom. The bears, however, have 3 consecutive bear bars. If the selling continues next week, the chart will test the April low.<\/p>\n The daily S&P500 Emini futures candlestick chart gapped up this week. This therefore created a 4 week island bottom. Also, the April low formed a double bottom higher low with the February low.\u00a0<\/p>\n However, it gapped back down on Thursday and therefore created a 2 day island top. In addition, it did so after a 50% retracement of the March selloff. Furthermore, it is reversing down after closing the gap below March 21. Finally, the past 3 days had bear bars and the bodies are getting bigger. This means that the momentum down is accelerating. That increases the chance of at least a small 2nd leg down.<\/p>\n Island tops and bottoms are common in trading ranges. The 4 week island bottom was bigger than the island top. In addition, if followed a double bottom with the February low. Furthermore, the monthly chart is in a strong bull trend. Consequently, the odds favor a test of the March high above 2800 over another test of the February low.<\/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
\n <\/a><\/p>\nDaily S&P500 Emini futures candlestick chart:
\n Pullback from weak breakout above 4 week island bottom<\/h2>\n
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