The Emini closed up 3.5 points at 1,479.00 on Tuesday. Quite a day today with a large number of technical signals happening:
- Doji pattern today with the opening price similar to the closing price
- After a gap up day yesterday, signaling extreme bullishness then indecision
- Larry Williams Failed Oops pattern with open and close above yesterday's high
- High churn day with volume above average at 1.3 million contracts traded and below average range at less than 8 points
- In fact the high churn was actually stopping volume with range below yesterday but volume higher than yesterday, and
- High volume with mid-close bar signaling profit taking in the afternoon
Below is a chart showing how over-extended the market is right now. The Trading Index Oscillator hit +181 today – the highest value since 13 September 2005. We're setting up for a high probability TRIN exhaustion signal once this oscillator turns down.
The TRIN Indicator is discussed in more detail here.
Lastly, if you're interested in how the Bond market affects the Emini check out this Bond inter-market analysis page. I'll probably re-visit some of these Bond market valuation and turning point indicators over the next couple of days. Apologies if the article is too long or too technical.