This chart was posted after the close.
The Emini and stock market had a strong bull opening reversal at the moving average, which controlled the day’s price action. Bulls kept buying pullbacks, and none fell below the bottom of the bull breakout that began at 7:25 am.
Posted 7:52 am PST.
The key feature in today’s intraday update is the opening reversal on the pullback to the moving average. A swing up from a major trend reversal usually is followed by a large trading range, which is likely today.
The Emini reversed up at the moving average at 7:25 am PST, forming a second entry opening reversal and a wedge bull flag. However, a trading range is still more likely. The bears want a reversal and then a test of yesterday’s low, and the bulls want a broad bull channel and a move above yesterday’s high.
The FOMC minutes get released at 11 am, and that could lead to a breakout up or down.
As of 7:45 am, the dominant event has been the strong reversal up at the moving average. As long as the market stays above the low of this bull spike (the low of the day), traders will buy pullbacks.
Traders can see the end of the day bar-by-bar report by signing up for free at BrooksPriceAction.com. I talk about the detailed Emini price action real-time throughout the day in the BrooksPriceAction.com trading room, and a 2 day free trial is available.
I sometimes refer to bar numbers (there are 81 five minute bars each day) instead of times on the 5 minute. When I mention time, it is USA Pacific Standard time (the market opens at 6:30 am PST, and closes at 1:15 pm PST). Background information on this report can be read on the Intraday Market Update page.
