After Monday’s trade I put out a signal alert to look for Long trades if the Emini broke above the 2,025 – 2,030 zone. And sure enough, we took off like a rocket first thing this morning and made it to 2,050. But that was it – it was like we hit a wall.
Turned out to be a nice topping out pattern. Pull Back to End of Trend signals on the 1,500 and 4,500 tick charts. Plus Exhaustion Buying, Bearish Divergence and Pros active at the Highs. A nice trifecta of non-correlated Emini signals. Plus all happening before 11am Chicago time – so good for a reversal trade.
But the strength of the sell-off was a complete surprise. We cracked through Monday’s Low and eventually bounced off 2,001. This level is now critical – plus it’s cyclical support on the daily charts for all the other market indices (Dow, NASDAQ and Russell). I’ll be watching 2,001 like a hawk tomorrow. For the uptrend to stay confirmed, this level has to hold.
Good luck with your Emini trading tomorrow.
