Growing Emini Parabolic Buy Climax Before Tax ReformPre-Open Market Analysis
Yesterday was another small pullback bull trend to a new all-time high. The 60-minute, daily, weekly and monthly charts are all in strong bull trends. While they are also in buy climaxes, there is no top yet. The bears will probably need at least a micro double top before they will get a reversal. Even then, the bull trends are so strong that the bulls will buy the 1st reversal down.
Overnight Emini Globex
The Emini is down 3 points in the Globex market. Because the 4-day rally has been extremely strong, the best the bears can probably get over the next few days is a day and a half of sideways to down trading. The bulls will buy the selloff.
Since the buying has been extremely climactic, the odds favor some profit taking within the next few days. This means that the daily chart will probably have a bear bar soon, and a bar that falls below the low of the prior day. Consequently, there will probably be a swing down on the 5 minute chart, and probably a bear trend day soon. In addition, it could be very strong. Yet, the odds are that it will not last more than about 10 bars on the 60 minute chart. This means about a day and a half.
Yesterday’s Setups
Here are several reasonable stop entry setups from yesterday. I sometimes also show limit order entries and entries on the close of bars.