{"id":84699,"date":"2019-01-04T06:20:15","date_gmt":"2019-01-04T14:20:15","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=84699"},"modified":"2019-01-04T13:37:15","modified_gmt":"2019-01-04T21:37:15","slug":"emini-pullback-strong-december-sell-climax-reversal","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/market-update\/emini-pullback-strong-december-sell-climax-reversal\/","title":{"rendered":"Emini pullback from strong December sell climax reversal<\/strong>
Intraday market update: Friday January 4, 2019"},"content":{"rendered":"

Emini pullback from strong December sell climax reversal<\/h2>\n

I will update again at the end of the day.<\/p>\n

Pre-Open market analysis<\/h2>\n


\nYesterday sold off on the open, but then formed a big trading range day. The selloff was in a bear channel, which is a bull flag. The odds favor a bull breakout of the channel today.<\/p>\n

There is a magnet below at the December 24 high. It was a bear bar and therefore a bad buy signal bar. Some bears sold above and scaled in higher, correctly believing the Emini would pull back to their 1st entry price. Since the rally last week was strong, the Emini might have a 2nd leg up before testing the December 24 high. <\/p>\n

The bulls have a magnet above at last week’s high. Last week is a buy signal bar on the weekly chart. However, that could be too far above to get there today. The bulls might have to wait until next week before trying again to get there.<\/p>\n

The daily chart will likely be in a trading range for at least a few weeks. Consequently, traders will look for every move up or down to reverse within 3 – 5 days.<\/p>\n

Overnight Emini Globex trading<\/h3>\n


\nThe Emini is up 33 points in the Globex session. It will therefore gap above yesterday’s bear channel. Furthermore, last week’s reversal was strong enough to make a 2nd leg up likely. Finally, last week is a buy signal bar on the weekly chart. These factors increase the chance of a bull trend day today. <\/p>\n

But, after 4 sideways days, traders will expect more trading range trading until they see a strong breakout up or down.<\/p>\n

Yesterday’s setups<\/h2>\n


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

Here are several reasonable stop entry setups from yesterday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely also show limit order entries and entries on the close of bars. My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter.<\/p>\n

<\/p>\n

EURUSD weekly Forex chart in bear channel and wedge bottom<\/h2>\n


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

The EURUSD weekly Forex chart has been in a tight trading range for 10 weeks. While this week is an outside down week, it has a small body. Therefore, it has no predictive value. The chart is in Breakout Mode.<\/p>\n


\nThe EURUSD weekly Forex chart has been in a tight range for 10 weeks. It is therefore in Breakout Mode. There is always both a bull and bear setup. The bears have a yearlong bear trend. But the bulls have a wedge bull flag. <\/p>\n

Prior breakouts over the past year came after a couple of months. In addition, Forex markets often begin swings in January. This increases the chance of a breakout within the next few weeks. <\/p>\n

But, until there is a breakout, there is no breakout. Traders will continue to look for reversals every few days.<\/p>\n

Overnight EURUSD Forex trading<\/h3>\n


\nYesterday was a bull trend reversal day on the daily chart (not shown). It is a buy signal bar for today. Today rallied above yesterday’s high and therefore triggered the buy signal. <\/p>\n

But, because the chart has been in a tight trading range, buy and sell signals typically fail. Today so far has reversed down 50 pips after triggering the buy signal. <\/p>\n

Because the reversal down over the past 10 minutes was sharp, there probably will be some follow-through selling. However, day traders will still mostly look for scalps because of the 2 month tight trading range. <\/p>\n

Since today is Friday, weekly support and resistance are important. This week is an outside down week. If the bears can close the week below last week’s 1.1343 low, that would slightly increase the chance of lower prices next week. <\/p>\n

However, that is only minor. Traders need to see a clear, strong breakout above or below the 2 month range before they will look for swing trades. Until then, day traders will continue to mostly scalp for 10 – 20 pips.
\n<\/p>\n

Summary of today’s S&P Emini futures price action and what to expect tomorrow<\/h2>\n

<\/p>\n

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

Here are several reasonable stop entry setups for today. I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely also show limit order entries and entries on the close of bars. My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter.<\/p>\n


\nBy going above last week’s high, the Emini triggered a weekly buy signal today. However, the bulls were unable to get above the February low. Therefore, there is still a gap below the 2018 trading range. But, the odds favor the bear rally getting above the February low next week.
\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

\n

Trading Room<\/h4>\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

Charts use Pacific Standard Time<\/h4>\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":"

Emini pullback from strong December sell climax reversal I will update again at the end of the day. Pre-Open market analysis Yesterday sold off on the open, but then formed a big trading range day. The selloff was in a bear channel, which is a bull flag. The odds favor a bull breakout of the […]<\/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":"shadow","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[153],"tags":[],"class_list":{"0":"post-84699","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\/84699","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=84699"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/84699\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=84699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=84699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=84699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}