Emini Trading Update – Wednesday 6 Nov 2013 (12:12)
Wednesday was interesting. They (the Professionals, the market movers, the guys in the know) gapped the Emini out of the 1,750 to 1,760 channel overnight. Takes less moolah as the asks are thin overnight. Then when the market opens people are trapped. Should they jump in? Should they reverse their Shorts?
Well that panic buying sends the Emini screaming up to 1,770. And that’s where “they” are taking profits. We see a classic exhaustion buying volume pattern, Pro signal exits, cyclical resistance on the higher timeframes and End of Trend on the lower timeframes.
The reversal from 1,770 was brutal. And took the Emini all the way back down to 1,760. So now we know 1,770 is a bridge too far – at least temporarily. So are we going to test the bottom edge of the channel at 1,750? Ouch, that would really hurt.
But today is no ordinary day – today is Twitter (TWTR) day. That’s the only thing we’ll hear about allllll day long. Let’s see what happens – I have no idea whether it’s a screaming buy or a dud. All I know is the market is over-bought relative to Bonds and the Yen.
Good luck with your Emini trading.