The Emini made a "No Demand" volume pattern today. I think we're in the process of slowly rolling over. Rather than an explosive buying climax, I think we're rather going to slowly top out with a series of profit taking and lack of demand volume patterns.
Volume Pattern – No Demand (Emini daily)
In the chart above you can see 3 of the previous peaks in the Emini had "No Demand" volume patterns. The tops have been made slowly and rolled over, while the bottoms have been made quickly with sharp bounces.
There's a link at the bottom of this page to the article about the "No Demand" volume pattern. I've also included my other favorite volume patterns on this chart – they are not entry signals alone but show accumulation and distribution by Professionals before a turning point.
Volume Patterns & Divergence (NASDAQ daily)
I mentioned in yesterday's momentum indicator video that the NASDAQ (and Russell 2000) were not showing the same strength as the Dow and S&P500. The NASDAQ and Russell 2000 tend to be leading indices – they get going first in an uptrend and slow down first when a market tops out.
The chart above shows the NASDAQ is finding it difficult to get through previous highs. Two days ago we also had a Stopping Volume pattern (variant). This shows some profit taking by Professionals. However, we've yet to see bearish divergence on the Momentum Indicator.
Hilbert Sine Wave – Cyclical Turn Approaching (Emini daily)
The Better Sine Wave caught the last cycle low perfectly – a good call on my part, even though I say so myself. Remember "End of the World Friday"?
Anyway, we're coming up to another cycle high turning point – should be made in the next 2 to 3 days. This is the cycle turn after an "End of Trend" warning signal and for me is very significant – often a good reversal entry point. But this rally has been very persistent, so no calling it early.
TRIN Indicator – Overbought & Divergence (Emini daily)
Lastly, the TRIN Oscillator reaches new overbought levels (+207) but is yet to turn. Should be Thursday if we have some price weakness. First sign of weakness is again the TRIN bearish divergence signal (white dot on the adjusted TRIN). These divergence signals often signal the Oscillator turning over early. This will signal profit taking on the Better TRIN systems long positions.
Good luck with your Emini trading. Follow this link to the "No Demand" volume pattern article. And in case you didn't see yesterday's video post responding to a question from a YM trader, here's the momentum indicator link.