Hilbert Sine Wave (Emini 135 min)
The Emini closed up 9.75 points at 1,401.75 on Wednesday. The Trading Index (TRIN) bullish divergence discussed yesterday worked out. The Emini found resistance around the 1,380 level and eventually closed up on high volume.
Read the original Trading Index article here.
The chart above shows John Ehler's Hilbert Sine Wave on 135 minute bars. The Emini has now made a "Complete" pattern. This signals the end of the trend move and the beginning of a cyclical trading phase. Note the Sine Wave nailed the low.
The trend move started with a breakout, labeled "No Pattern BO" and circled. Then there is a strong trend move – Elliott Wave 3. Next a pullback in trend, labeled "FirstPB" and circled – Elliott Wave 4. Finally an exhaustion move or Elliott Wave 5, labeled "Complete" today.
Good luck with your Emini trading.