OK, I don't know the future. Nobody does – except, of course, a few very lucky psychics! All I do know is that patterns repeat. Patterns like:
- Down trends end after Exhaustion Selling volume
- "End of Trend" warning signals appear near trend changes, and
- Professionals buy on down bars and on down days
On my higher time frame charts (e.g. Emini 135 minute) I have yet to see these patterns. We're close to an "End of Trend" warning signal but not there yet. We've not seen Exhaustion selling volume followed by Bullish divergence patterns. There are Professionals active at the close of today on the lower time frame charts (e.g. Emini 13,500 tick) but nothing significant above that.
And we're perilously close to the 1,050 level. My best guess is that we'll see some capitulation volume over the next day or two. The question is whether 1,050 holds. If not, the move down could be strong and fast. I'm prepared and vigilant.
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Emini and Multiple Time Frames (10:15)
And here's the 135 minute Emini chart from last week with today's activity. Plus the higher time frame charts. Daily chart we're in a down trend. Weekly chart we're still waiting for a cyclical low to "catch" the down trend.
Emini and Multiple Time Frames (Weekly, Daily and 135 minute)
Good luck with your Emini trading over the next couple of days.