S&P 500 Emini market analysis
Emini daily chart
- The Emini formed a downside breakout bar on Monday, as the bulls began to take partial profits and the bears began to sell.
- This is a warning that the momentum of the bulls is beginning to weaken.
- The bears have done a good job getting a bear reversal bar. However, one bar alone is not enough. Next (LON: NXT ), the bears need to create a series of bear bars closing below their midpoints.
Emini 5-minute chart and what to expect on Tuesday
- The Emini formed a large bear breakout bar on bar 1 near the day’s low. This increases the odds that today, there will be a lot of trading range price action on the open.
- The bulls formed a reversal up with bar 7. They are hopeful that the bar 1 bear breakout will lead to a measured move up of the bar and a test of Y’s Bar 53 high.
- The bulls are hopeful that the rally up to bar 13 is forming a small pullback bull trend. At a minimum, they need to form negative gaps to convince traders that a small pullback bull trend is underway.
