Emini ii Final Bull Flag Before PullbackPre-Open Market Analysis
The Emini rallied strongly last week. Thursday and Friday were consecutive inside bars and therefore created an ii breakout mode pattern. After the 2-week strong rally, the odds are that there are buyers below.
Furthermore, Friday was a bull bar. That therefore increases the chances of a successful bull breakout today. Yet, because the rally was extreme, it was climactic. Hence, a bull breakout will probably not last more than a few days before the Emini enters a trading range. Therefore, this week will probably be the start of a trading range.
Overnight Emini
The Emini is up 5 points in the Globex market. Yet, even though there is no clear top yet, the daily chart is in a parabolic buy climax. Hence, the odds are that this week will go sideways. This is similar to the November 25 and December 13 buy climaxes rallies. The odds are that there will be sellers above Friday’s high. Therefore, if today gaps up, the gap will probably close today or tomorrow. The chance of a strong rally this week is only about 30%. Sideways is more likely.