Trump, Comey, and Russia are minor compared to buy climax
I will update around 6:55 a.m.
Pre-Open market analysis
The bulls want the bull trend to resume up to a new all-time high. Yet, Friday was a big outside down day. Furthermore, it was also a doji.
While the rally on the daily chart is a nested wedge top and a probable bull leg in a trading range that began in February, there is no clear top yet. However, this rally probably will not continue much further before selling off about 100 points to below the weekly moving average. The bears want follow-through selling after Friday’s strong reversal down.
Overnight Emini Globex trading
The Emini is down 3 points in the Globex market. Since Friday had a big reversal back to the middle of the day’s range, the Emini is now confused. Furthermore, it is awaiting Wednesday’s FOMC announcement. The odds favor sideways trading into the report.
Yet, please read my weekend report. The daily chart has a wedge rally. Furthermore, it looks similar to the rally in the financial market that topped out in February. Since the weekly Emini chart is so extremely overbought, the odds still favor a 100 point selloff beginning at any time.
Trends resist change. The current bull trend on all higher time frames has had many reversal attempts. Yet, as was likely, all failed. Hence, Friday’s reversal probably will fail as well. However, one will eventually succeed, and Friday’s selloff was strong enough to make traders ready to look for a 2 month swing down.