Emini Trading Update – Thursday 21 June 2012 (22:09)
Today’s video is long, but no excuses this time. Everything came together and we ended up down 2.5%. Well telegraphed in Sunday’s and Monday’s videos. And the secret signal came with the Crude and Dollar Index charts yesterday.
OK, now we’re looking for a strong down leg on the daily chart that will run PullBack to End of Trend. We’re going to slice through 1,250 like it wasn’t even there. And I’m looking for a re-run of 2008. The news is going to get really, really ugly. Europe yes, but bad news out of US too now.
Sticking my neck out? Yeah. But sometimes you need to. And the reason for it is the way the cyclical resistance level played out yesterday and today. The level was made quickly and we moved swiftly away from it – large range, high volume down bar. There was no hint of an overshoot.
Rule of thumb when using Better Sine Wave: In uptrends, cyclical support levels are rarely broken and we overshoot cyclical resistance levels to the upside. In downtrends, we get the reverse – cyclical resistance levels are rarely broken and we overshoot cyclical support levels to the downside.
So Wednesday/Thursday’s activity confirms for me we are in a downtrend on the daily chart and that needs to run its course and break a daily support level and run PullBack to End of Trend.
Time to buckle up and get my head in the game.
If you’re reading this article via email or RSS reader, then follow this link to view the Emini Trading video on the website. Good luck with your Emini trading.