The Emini closed down 6.50 points at 1,533.75 on Tuesday. Range was average at 10.50 points but volume was well above average at 1.6 million contracts – giving us a Volume Churn day. The low for the day at 1,527.00 came with a Volume Climax down bar shown on the 45 minute chart of the Emini below.
Volume Indicator (Emini 45 min)
We went short the Emini September 2007 contract on Sunday evening at 1,554.50 and have now taken profits on half the position with our 10 point profit target at 1,544.50. The initial stop loss has been tightened and we're waiting to see what happens next.
The market could go either way next. On the bullish side we have:
- Cyclical up turns on the 45 and 81 minute time frames
- High Volume Churn with a Volume Climax low today
- NASDAQ and Russell indexes outperforming the Dow and S&P500
- Professionals are still long based on COT data
On the bearish side we have:
- Composite Trend Oscillator has turned down and is at -54
- Bond market continues to fall and we are close to a downward turning point
- US dollar weakening, especially against the Japanese Yen
- Crude oil prices are rising
Good luck with your Emini trading.