Volume pattern showing professional profit taking on Friday. The Emini gapped up on Friday and we had a large volume (2.0 million contracts), low range (13 points) day.
The large volume and low range indicates a high volume churn day. This was also a "Stopping volume" pattern with the volume higher than the day before but the range was smaller – and the Emini couldn't make it through the 1,400 level. Add in that the market was gapped up as the non-professional traders chased prices and this was a perfect day for professionals to take profits.
I'm not saying that the top of this move is in – just be careful not to jump in late. My medium term forecast is still bullish but that doesn't mean we won't have retracements along the way. Time to watch and see what the market will do next.
TRIN Indicator Update
TRIN Indicator (Emini daily)
TRIN indicator signaled a bearish divergence warning signal on Friday. So looking to take profits on the last trade and possibly set up for a reversal trade. Follow this link to read more about the Better TRIN indicator.
Good luck with your Emini trading.