Pull Back Signal with Hilbert Sine Wave (Emini 135 minute)
Friday was a high volume churn day. The range for the day was low at only 11.50 points but the volume was high at 1.9 million contracts traded. This suggests that as the Emini pushed higher, selling volume increased and stopped prices advancing. Turning points typically have high volume churn.
We’ve also got a cycle turn down on the 135 minute chart – my primary swing trading time frame. The Hilbert Sine Wave has signaled a “Pull Back” (labeled PB on the chart above) and so we might see the down trend resume.
Volume Indicator Churn and No Demand (Emini 15 minute)
The 1,263 level on the Emini is offering strong resistance. There does not appear to be enough demand to push through this resistance level, as shown on the chart above with declining volume and high volume churn at the end of Friday’s trade.
However, high volume churn at the end of the day does not always suggest a turning point is imminent. Sometimes it just shows day traders exiting their trades at the end of the day. We’ll have to wait for confirmation to be sure.
It looks like all the conditions are there for a resumption of the down trend come Monday’s trading. But I’ll be waiting for a high volume down bar early in the day to signal that a new down move is under way.
Good luck with your Emini trading.