Each morning I review the overnight price action in the S&P500 E-mini. The MarketWarrior forecast for the E-mini on a 60 minute chart covers one week so each morning I make a decision to either recalculate the forecast for the rest of the week or leave the forecast unchanged. I do this before the main trading session opens. The chart below shows the 60 minute chart for the E-mini through 6:00 AM ET on July 1, 2015. The forecast shown on this chart is the same forecast seen in the previous article discussing the 60 minute E-mini chart. The forecast made the previous day shows a Change-In-Trend (CIT) at 7:00 AM ET on July 1, 2015 at the price 2073.43 and the overnight market had been moving up toward 7:00 AM and the price levels were similar to the forecast price levels. Because of this I decided not to recalculate the forecast.
The forecast shows three CIT for July 1, 2015. These are a Top at 7:00 AM ET at the price 2073.43. Second is a Bottom at 12:00 (noon) PM ET at the price 1068.38 and finally a Top at 19:00 (7:00) PM ET at the price 2073.07. On the chart below I have drawn a red box around the forecast area. This creates a forecast pattern for July 1, 2015 which is a sequence of Top-Bottom-Top and should look like a V or double top pattern.
This forecast was made with MarketWarrior 5 using DTN IQFeed. The tool that makes the forecast does not require any user settings or inputs, it is fully automatic.
The chart below shows the 60 minute E-mini chart during the 21:00(9:00) PM hour on July 21, 2015. The forecast for July 1 turned out to be very accurate. The pattern on July 1, 2015 shows a top early in the day at 5:00 AM then a bottom at 2:00 PM and finally a top at 4:00 PM. This created a Top-Bottom-Top pattern similar to the forecast pattern. Each forecast CIT was off by two bars. The price action during the main trading session was sideways but a rally did occur between the June 30 and July 1 main trading sessions. This occurred in the after hours session of June 30, 2015 and the pre-market session on July 1, 2015. When you see a trend between the main trading sessions it indicates there was some important international news that caused the Globex E-mini market to move overnight. Recently overnight markets have been affected by economic news from China or news about the Greek economic crisis. A strong up trend overnight often leads a sideways pattern in the main trading session.