The Emini closed up 2.75 points at 1363.00 today. Almost an inside day – the low was exactly the same as yesterday (1,351.25) and we couldn’t break yesterday’s high. Volume was also slightly less than yesterday.
On my Emini swing trades my primary time frame is the 135 minute chart (3 equal bars per trading day). I’m also looking at one time frame higher and one time frame lower. The higher time frame is the daily chart, the lower time frame is the 45 minute chart. Both are a factor of 3 larger and smaller than the primary time frame.
If you use the Hilbert Sine Wave, you’ll notice that the cycles in different time frames often conflict. And that’s the situation we have at the moment.
Multiple Time Frame (Emini daily)
In the daily time frame we’ve broken above resistance and held for 7 days. Usually if we hold for several days above resistance an up trend move gets underway – but we should have broken out by now.
Multiple Time Frame (Emini 135 minute)
In the 135 minute time frame the cyclical low turning point yesterday looked good. This morning we had a large volume advance in the morning but we couldn’t get above 1,370 – we might have run out of buyers. A break below 1,351 (the low of the high volume bar) would confirm this.
Multiple Time Frame (Emini 45 minute)
Lastly in the 45 minute time frame, we’ve had a break below support and a pull back to that support level (1,366.50). This move needs to get resolved and finish with a cyclical low turning point.
One of these time frames will become dominant and the market start to move in synch again. Right now we have no demand above 1,370 and no supply below 1,350. Fridays tend to be larger range days – so we’ll probably find out tomorrow which direction the Emini is going in.
Meanwhile I’m still short based on a system trade. Good luck with your Emini trading.