Hilbert Sine Wave (Emini 135 min)
The Emini has already retraced 50% of Tuesday’s drop. Monday’s close was 1,542.50, Tuesday’s close was 1,520.00 and today’s close was right in the middle at 1,531.00. In yesterday’s Emini update I guessed that the correction was not going to be very severe. Right now it looks like it was a one day event.
Will the rally continue? My primary time frame for swing trading the Emini is the 135 minute chart (exactly 3 bars per trading day). In that time frame we’re about to have a cross-over in the Hilbert Sine Wave. The chart is shown above. My best guess is that the cross-over is early and we will retrace and consolidate tomorrow.
The Hilbert Sine Wave (courtesy of John Ehlers) has done a remarkable job at catching turning points in the Emini. A long string of successful trades is discussed in this post (10 out of 10). In the chart above you can see the first 5 turning points are nailed, although the last 2 did overshoot with early cross-overs. You can read more about John Ehlers and the Hilbert Sine Wave here.