S&P 500 E-Mini Bulls Form 3 Consecutive Bull Bars: Should You Go Long?

Market Overview: Emini Futures

The Robust Bulls shaped 3 consecutive bull bars closing close to their highs, breaking far above the 20-week EMA and the bear development line on the weekly chart. They need a resumption of the bull development. The bears hope to get a reversal from a decrease excessive main development reversal or a double high.

S&P 500 Emini Futures

S&P 500 Emini Weekly Chart

This week’s Emini candlestick was one other consecutive bull bar closing close to its excessive.
Final week, we mentioned that the percentages proceed to barely favor the market to commerce no less than slightly greater and merchants will see if the bulls can get one other follow-through bull bar, closing above the bear development line.
This week traded greater, and the bulls received a follow-through bull bar closing far above the bear development line.
The bulls see the transfer down (from July 27) as a deep pullback of the entire transfer up which began in October 2022.
They received a reversal from a wedge bull flag (Aug 18, Oct 3, and Oct 27) and a development channel line overshoot. 
They then received a powerful rally with consecutive bull bars breaking far above the 20-week EMA and the bear development line.
The present move-up is in a 4-bar bull microchannel with huge bull bars closing close to their highs. Which means robust bulls.
In the event that they get a few robust consecutive bull bars, the percentages of the bull development resuming will enhance. The bull development could also be resuming.
If the market trades decrease, they need a reversal up from a better low main development reversal and the 20-week EMA to behave as help.
The bulls might want to create follow-through shopping for following this week’s shut above the bear development line.
Beforehand, the bears received the third leg down forming the wedge sample (Aug 18, Oct 3, and Oct 27). 
They wished a powerful breakout under the bull development line, however the market reversed up with power as a substitute.
The bears see the robust rally as a retest of the July 27 excessive and desire a reversal from a decrease excessive main development reversal or a double high.
Since this week’s candlestick is a bull bar closing close to its excessive, it’s a purchase sign bar for subsequent week.
The market might hole up on Monday. Small gaps often shut early.
Odds proceed to barely favor the market to nonetheless be within the sideways to up part.
Merchants will see if the bulls can get one other follow-through bull bar or will the market commerce barely greater however shut as a doji or with a bear physique.
If the market trades barely decrease within the coming weeks, odds barely favor the bulls to get no less than a small second leg sideways to up.

S&P 500 Emini Each day Chart

The market gapped above the bear development line on Tuesday adopted by sideways to up buying and selling into Friday.
Final week, we mentioned that the percentages barely favor the market to nonetheless be within the sideways to up part. Merchants will see if the bulls can create sustained follow-through buying and selling far above the October excessive and the bear development line.
The bulls noticed the earlier selloff as a deep pullback of the entire rally which began in October 2022.
They received a reversal from a wedge bull flag (Aug 18, Oct 3, and Oct 27) and a development channel line overshoot. 
The move-up is powerful with a number of huge gaps that remained open and in a good bull channel.
The following targets for the bulls are the July 27 excessive and the all-time excessive.
They hope that the present rally will kind a spike and channel will final for a lot of months.
If the market trades decrease, the percentages barely favor no less than a small second leg sideways to up.
The bears hope that the robust rally is solely a retest of the July 27 excessive. 
They need a powerful reversal down, just like the one in August 2022 following an identical robust rally.
They need a reversal down from a decrease excessive main development reversal and a micro double high (Nov 15 and Nov 17).
For now, the shopping for strain stays very robust regardless of the climactic nature of the transfer.
Till the bears can create robust bear bars with sustained follow-through promoting, odds proceed to favor the market to nonetheless be within the sideways to up part.
If there’s a bigger pullback, odds barely favor no less than a small second leg sideways to up after the pullback.