Assessing S&P Emini Pre-Open Market Trends
Review of Emini Daily Chart
- The Emini witnessed a gap down and formed a formidable bear breakout bar while testing near the moving average and the January 12th breakout point high.
- The bearish sentiment is optimistic about the potential of another strong bear trend day leading to a close below the moving average.
- However, the more probable scenario is a day with disappointing follow-through selling, possibly resulting in a trading range day or a bull bar, ultimately closing above the open of the day.
- While yesterday was surprising, at least a minor pullback is expected, albeit possibly deeper than what the bears would prefer.
- The market is currently favoring a minor reversal down, despite still being Always In Long.
Emini 5-Minute Chart and Projected Expectations for Today
- The Emini has shown a 14-point increase in the overnight Globex session.
- During the early morning hours, the overnight Globex market experienced a rally.
- The likelihood of today becoming a strong bear trend day stands at 25%, while a 75% chance exists for a trading range lasting two hours, starting before the end of the second hour.
- There is a 50% chance of selling on the open, followed by 2 hours of sideways trading.
- Traders should anticipate a trading range open and consider refraining from trading for the first 6-12 bars, unless quick decisions can be made and limit orders can be placed.
Highlights of Yesterday’s Emini Setups
Following are reasonable stop entry setups from yesterday. Each buy entry bar is indicated with a green arrow, and each sell entry bar with a red arrow. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a nearly 4-year library of more detailed explanations of swing trade setups (see Online Course/BTC Daily Setups). Encyclopedia members gain current daily charts added to Encyclopedia.
My objective with these charts is to present an Always In perspective. If a trader aimed to be Always In or nearly Always In a position all day, and was not presently in the market, these entries would be logical times to enter. Hence, these are swing entries.
It is vital to comprehend that most swing setups do not result in swing trades. Upon facing disappointment, many traders exit. Those who exit prefer to secure a small profit (scalp) but often end up with a small loss.
If the risk is too substantial for your account, it is prudent to await trades with less risk or consider trading an alternative market like the Micro Emini.