Emini closed down almost 20 points today and broke the 1,050 level. I don’t think the down trend is over but we’ll probably get a bounce tomorrow morning. The selling into the Close was pretty intense and the Shorts have run out of bullets, temporarily.
High of the day was marked with a “Head and Shoulders” pattern. I run through the setup in the video as it shows:
- Left shoulder, head and right shoulder are marked with cyclical turns
- Exhaustion volume then less and less momentum with Bearish divergence signals
- Professionals taking profits into left shoulder and head, then
- Amateurs getting it wrong on right shoulder.
Head and Shoulder Pattern (Emini 500 tick)
And here’s a screen shot of the Emini 500 tick chart. Showing the “Head and Shoulders” pattern with my 3 non-correlated indicators.
Good luck with your Emini trading.