Emini Trading Update – Wednesday 5 Jun 2013 (15:47)
Well, there we go, we got the break of our “line in the sand” – 1,620 to 1,625 – from Monday’s update. It was choppy though – not just the set up for the break but all the way down.
Where to from here? Well, I think everyone is too complacent. Any retrace since December has been a minor affair and I think this could snowball. Investors have been conditioned to expect minor 5% drops. So if it gets bigger than that they’ll panic.
From a ‘Better’ indicators perspective though, this will be the reversal setup:
- Cyclical Support on the daily chart (which will be a Pull Back in an uptrend)
- Blue Professional bar on the daily chart (with a nice panicky volume reading)
- Exhaustion selling (with first Bullish Divergence) on the 40,500 tick chart
- End of Trend signal on 40,500 tick chart (which corresponds to a 45 minute chart)
Correction: In the video at 6:52 I’m looking at the wrong part of the 500 tick chart. Apologies. The correct part of the chart is shown at 10:13 – Exhaustion buying with RAMBO patterns.
Good luck with your Emini trading.