Bullish Domination Emini Level and Trading Update April 19

Apr 19, 2016: 10:01 AM CST

The Intervention Pattern Continues with additional upside price action on a gap-up this morning.

Like yesterday, let’s start with the recurring price pattern and then plan our trading levels:

Here’s the Intervention Pattern:

First, price gaps down strongly overnight or off the open.

Second, buyers rush to put on positions, stabilizing the market and buying aggressively into the selling.

Third and finally, buyers overcome sellers and sellers become buyers as a forced short-squeeze propels price higher.

The Intervention Pattern occurred at least six times from March 24th (and more before then).

That’s what we’re seeing right now – a similar gap-down, an intervention by buyers, and a forced short-squeeze.

Love it or hate it, it’s reality and we must adapt to reality – price patterns help us see the hidden supply/demand relationships.

Let’s move now from the Intervention Pattern to the levels and Tuesday’s price action chart:

Today’s Intervention buy event logically came off the 2,065 price pivot (two prior reversals) as highlighted.

Yesterday’s “Bullish Engulfing Candle” set the stage for additional upside price action this morning.

We’re still in “Open Air” territory as price trades into the 2,100 S&P 500 level (just shy of the @ES 2,000 level).

In volatile markets like these, focus on lower timeframe charts like the 5-min and 1-min chart for trading smaller retracement or flag opportunities that develop in real time.

2,090 is today’s floor while 2,100 is a possible projection target (also watch the cash S&P 500).

Note the new steeply rising parallel trendline channel as highlighted with price at the upper range.

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Corey Rosenbloom, CMT

Afraid to Trade.com

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1 Comment

One Response to “Bullish Domination Emini Level and Trading Update April 19”

  1. Martin Says:

    Nice for sharing this, I think we can get into this trade if we’re sure of the movement if it’s going to continue. I usually prefer to do long term trades only, but it’s obviously with having swap free account that I operate with OctaFX and as per rest, I am simply following this amazing blog and it’s helping me gain so much which allows me to be successful, it’s always important that we trade with proper way instead of just randomly.