Trump rally breakout of 2400 should fail within 2 weeks
I will update around 6:55 a.m.
Pre-Open market analysis
The Emini rallied early yesterday to a new all-time high. Furthermore, it broke above 2400 for the 1st time. Yet, it went sideways in a tight range for 5 hours. This was therefore Breakout Mode. Sometimes a strong breakout does not begin until the next day, which is today. The bulls want a resumption of yesterday’s early rally. But, the bears want a reversal down. No matter what happens today, the odds still favor a 100 point selloff beginning anytime within the next few weeks.
Overnight Emini Globex trading
The Emini is up 4 points in the Globex session. While the market is hesitating around 2400, it is in wedge channels on the 60 minute and daily charts. The tops of those channels are around 2410, which is therefore a magnet. Since most days over the past month have been trading range days or have spent a lot of time in a trading range, that will probably continue today. Yet, because the Emini is at important resistance, there is an increase chance of a strong bull breakout or a strong reversal.