Emini awaiting September central bank interest rate announcements
The odds are the the Emini rally is stalling on the weekly and monthly charts. This will probably result in a trading range over the next 6 – 12 months, asserts Al Brooks.
Monthly S&P500 Emini futures candlestick chart:
Buy climax, Emini awaiting September central bank interest rate announcements
The monthly S&P500 Emini futures candlestick chart has not pulled back below the low of the prior bar for 10 months. This is, therefore, an 11-month bull micro channel.
The monthly S&P500 Emini futures candlestick chart’s behavior is unsustainable and therefore climactic. Each of the past 10 months has had a low above the low of the prior month. This is, therefore, an 11 bar bull micro channel. It is a sign of strong bulls because it means they have been so eager to buy that they have not even waited for a pullback. Consequently, they will be eager to buy below the low of the prior bar when they finally get the opportunity. As a result, the odds are that there will be buyers below this month’s low.
However, because the rally is so extreme, the 1st pullback might last 2 – 3 bars instead of only 1. In either case, the chance that the 1st reversal down will lead to a trend reversal is small.
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