I am traveling today and was unable to post, but I will post tomorrow, Thursday, and Friday. The Emini sold off strongly today and is deciding whether the 20% correction has begun, or instead if it is forming a triangle on the daily chart for one more new high before the correction begins. The month is almost over and traders are working on the appearance of the monthly candle. Bears want a bear bar closing on its low, setting up an ioi sell signal, and the bulls want anything else.
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My thoughts before the open
I was traveling today.
Summary of today’s price action and what to expect tomorrow: Bear trend day, but oversold
The market had a second strong bear trend day and tested the low of the FOMC day last week. Bulls want a double bottom and the bears want a measured move down. Because of the consecutive sell climaxes, tomorrow will probably rally for at least a couple of hours, but there might be some follow-through selling for the first hour or two. Today missed last week’s low by 1 tick and therefore is almost an outside down week. There might be a bounce tomorrow, and then Friday will decide whether the week will close below last week’s low, which could lead to a measured move down.
The daily chart had a sell signal entry bar yesterday. The weekly and monthly charts will decide whether the bears will also start to win on the higher time frames.
See the weekly update for a discussion of the weekly chart and for what to expect going into next week.
Traders can see the end of the day bar-by-bar price action 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.
When I mention time, it is USA Pacific Standard Time (the Emini day session opens at 6:30 am PST, and closes at 1:15 pm PST). You can read background information on the intraday market reports on the Intraday Market Update page.
