The Emini closed down 4.75 points at 874.25 on Friday. Volume was below average at 1.7 million contracts traded. We also failed to break Wednesday's low of 865.
Trend Line Congestion (Emini 45 min)
We're now entering a congestion zone, as shown on the Trend Line chart above, from which I expect a large range move. But in which direction?
Volume Indicator – Less Selling (Emini 45 min)
Selling volume has been declining since Wednesday and the 865 level has held. The chart above shows the Better Volume indicator with white bars highlighting climax volume down bars.
These climax volume down bars have been getting less powerful since the break on 2 July. So my best guess is that we'll hold 865 and break out to the upside.
This also fits with my swing trading oscillators – but I still believe we're in a down trend and this will just be a retracement before the down trend resumes.
Good luck with your Emini trading.
