Futures, E-Mini S& P 500, June 24th 2014
5 Minute Time Frame.
5 Minute Chart
E-Mini S & P 500
June 24, 2014
Price action during premarket hours states a steady bullish trend to the opening. This represents the likelihood for a bearish fade if this price action continues to the opening.
Take note, that once the market opens, traders will be reserving strong positions until 10 o'clock; in which time new home sales and consumer confidence reports will come out and exert influence on the market.
Bar one came to be by the Bulls as the main participants at the opening, however, the top tail indicates bears looking for a fade play at the opening. Traders at this point understand that the context of this price action is limited until 10 o'clock.
Algorithmic probability of price action, states a pullback for bar number three. During this time the main mentality of the market is that of a scalper.
Failure for the pullback by the Bears, denotes strong inertia for the Bulls with bar number four. With the close of bar number four whose significant feature as a top tail, strong bears appear ready to make their first appearance in today's market.
Probability can lean slightly towards a pullback to or near the moving average with in the next few bars from bar number five.
Reports are due, the market's reaction has been noted, and the Bulls believe to have arguments for its direction at the moment.
Today could be "open from the Bull day". The market continues to react after the reports of consumer confidence and new home sales. Once again it appears that inertia will remain with the Bulls today. With the close of bar number eight, conservative traders will look to buy pullbacks and aggressive traders will buy just about for any reason.
With the close of bar 10 and its bottom tail, market participants are buying pullbacks.
The initial target for the Bulls, as per projection of a measure move places it at the 1958 price levels. Judging by the strong and steep bullish momentum, the market could not only reach these price levels, but surpassed them without much resistance.
The closing of bar 11 is gathering evidence of that possibility, with its close near its high.
As stated, the market reached and surpassed the 1958 price levels, with a very steep and bullish price action. Another failure for a bearish pullback in bar 13 only reaffirms the strength of this bullish trend.
With the closing bar 14 near its high prices are likely to go even higher. However, these continuous buying climaxes, can generate a sensible pullback in due time.
Once this happens, whatever these price levels happen to be hit, is all very likely to Into the causes of boys it tries is that though you don't be a socially they series is it's a little bit against the yen Cornelius ASA Jeremy's the is Yankees that in the yes do you I will do you get to go see the know about you you yes I made and maybe out of is that it is okay whenbe met by aggressive bulls starting new long positions.
Paused by the Bulls, with bar 16 and 17, bearish participants are not interested in forming a pullback to the moving average or near it just yet. Prices will likely form a double top with the market to a minimum; there remains a high probability that prices will surpass the high of the day.
In classical terms the market has completed a wedge top with the high of bar 15. Beyond this point, the price levels found by bar 19 could be considered as a potential resistance levels for the day.
Bar 26 is marked by the algorithmic probability of price as a buying opportunity in the form of a pullback. Placing a stop loss one tick below the low of bar 14. Given that for nearly 2 hours the market has not touched the moving average until now, creating the environment for a trending trading range.
Bar number 30 closing near its high murmurs the Bulls with a run of the market into a double top.
Selling pressure accumulation with the closing bar 32, however, market inertia remains with the Bulls. Take note of the support ledge at the 1958 price level. Which constitutes eight consecutive bars with their low at this price.
With the initial behavior of bar 34, buying energy appears to be forming in the shorter time frames price action.
At this point, the market has completed a wedge bottom; along with the algorithmic probability of price action, which calls for a long run after the bar 35 close.
With the closing of bar 36 the Bulls are making an attempt to run the price levels above the moving average. If that's the case prices could match the high of the day. Market participants wait for the closing of bar 37, once this takes place and if the final bar formation is a bull bar, this would enable the case for the Bulls.
Penetration by the Bears below the low of bar 14 forms the fourth push in this wedge formation with bar 40.
Algorithmic probability of price action, calls for a bull run after the closing of bar 42. However, inertia appears to be with the Bears.