In Tuesday's update I expected the Emini to form a typical Pull Back and End of Trend pattern. In fact the Emini fell through the Pull Back support level, tested that support level and then continued down. The chart below shows what happened.
Close Below Support Level (Emini 27 minute)
In the last 30 minutes of Friday’s trade, the Emini closed below the cyclical Support level of 886.50 on the 27 minute chart. It is also below similar Support levels on the 45 and 81 minute charts.
Support Level Broken on Climax Volume Down (Emini 27 minute)
The Support level was also broken on a Climax Volume down bar. This usually shows the Support level is not going to hold and could turn into a down trend move.
Cyclical Down Swing (Emini daily)
A down trend move in the lower time frames (27 minute) would match the cyclical down swing we’re seeing on the Emini daily chart. Let’s see how Monday’s trading develops.
Good luck with your Emini trading.
