I didn't expect the market to fall so hard today – thought we might break and hold above 1,405. But we've had an exhaustion volume down bar that revealed Professional buying and so I'm still bullish.
Exhaustion Volume Pattern (Emini 15 minute)
We came down to 1,385 and appeared to hold. But just before midday we broke to new lows and this panicked the amateurs into selling. The Professionals stepped in and absorbed the panic selling.
As most of the sellers had sold, the Emini then started a steady climb back up to 1,385. We might still get another wave of selling and test the 1,380 lows – but if this is on lower volume it will be a successful "test" and be a bullish signal.
Side note: The Better TRIN Oscillator has turned down and gave an exit signal on a long trade (break-even). I'm reluctant to go short here because the other oscillators are not over-bought.
Bond Market Bounce (Daily bars)
Just a quick re-cap of last Wednesday's Bond market chart. We've now bounced back into the congestion zone, which has removed the dark cloud over the stock market – for now. We'll keep watching.
Good luck with your Emini trading.