Bingo. We got the drop. Almost 23 points from the overnight Emini high near 1,113 to the day's low near 1,090. I wish they all worked out like that.
But where to now? There was quite a lot of Professional buying coming in at 1,092 and we ended pretty strong. In fact, we printed a "Profit Taking" bullish volume pattern on the daily chart. My best guess is we're going to rally a little ways and form an "End of Trend" warning signal on the 45 minute chart.
Hilbert Sine Wave (Emini daily)
On the daily chart you can see the Better Sine Wave (my version of Hilbert Sine Wave) is just about to make a cyclical top. Maybe Wednesday, maybe Thursday.
Hilbert Sine Wave (Emini 45 minute)
If you drop down to the 45 minute chart, the Emini bounced on a "Pull Back" cyclical support level – which means there's a strong chance we'll rally and form an "End of Trend" warning signal. And my favorite setup – cyclical turn in higher time frame coinciding with "End of Trend" warning signal in lower time frame.
Mostly I look for these on my Emini day trading charts – "End of Trend" on 500 tick chart and cycle turn on 4,500 tick chart (2 time frames above or 9 times). They can also appear on 1,500 tick and 13,500 tick charts. But they're equally valid on longer time frame charts. The daily chart has 405 minutes of trading and so the lower time frame would be 405/9 = 45 minutes.
Let's see how this works out. Good luck with your Emini trading.
