Monday 6 October 2008

Close in the Middle on High Volume

Ignore the media. Today's story was a close in the middle on high volume. Professional buyers returned to the market at 1,000 and drove the Emini up to 1,050. We now have a preliminary support level that will probably be tested.

There was a fair amount of churn volume, indicating profit taking, at the end of the day around the 1,060 level. So we could see the Emini re-test the 1,025 level tomorrow. Above us there's the gap between 1,082 and 1,103 that will act as a magnet until filled.

Emini Swing Trading Oscillators Image

Swing Trading Oscillators Over-Sold (Emini daily)

I haven't posted any Emini swing trading oscillator charts for a while. Not surprisingly all the oscillators are over-sold and yet to turn up. The first bullish signal has appeared though, with a Bullish Divergence pattern on the TRIN (see chart below).

Emini TRIN Image

Bullish Divergence on TRIN (Emini daily)

Today's adjusted TRIN reading was only -33, moderate selling and higher than the previous extreme lows on the adjusted TRIN (-293 and -211). You can read more about the Better TRIN indicators in this feature article.

Calling bottoms in this market is a foolish business but I wouldn't be surprised to see the momentum starting to shift to the upside later tomorrow. Let's see what happens. As always, trade your setups not your intuition. Good luck with your Emini trading.