S&P 500 E-Mini May Form Inside Bar This Week
2023.09.11 09:59
S&P Emini Pre-Open Market Analysis
- The form an inside bar with last week’s range. Traders should be open to the possibility of this week having a lot of overlap.
- The Emini broke a four-bar bear micro channel last Friday. The bears are hopeful that the first reversal of the microchannel will lead to a second leg down. However, the pullback will likely be deeper than what the bears want.
- The daily chart has been in a trading range for several months. This increases the odds of disappointment for both sides.
- The Bulls want a test of the September 1st high, and the Bears want a second leg down after last week’s selloff.
- Overall, the bulls will try to get more follow-through buying to disappoint the bears further. The bears want to trigger last Friday’s low 1, although, probably buyers below. Traders should expect sideways traders for the next couple of days.
What to Expect Today
- Emini is up 25 points in the overnight Globex session.
- The overnight Globex session rallied for several hours.
- The market will likely gap up at the start of the U.S. Session.
- Traders should expect a trading range open. There is an 80% chance of the market going sideways for at least 6-12 bars on the open. This means that traders should not rush to trade the open.
- There is only a 20% chance of a trend from the open.
Friday’s Emini Setups
S&P 500 Emini 5-Minute-Chart
Here are several reasonable stop-entry setups from Friday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a near 4-year library of more detailed explanations of swing trade setups (see Online Course/BTC Daily Setups). Encyclopedia members get current daily charts added to the Encyclopedia.
My goal with these charts is to present an Always In perspective. If a trader was trying to be Always In or nearly Always In a position all day, and he was not currently in the market, these entries would be logical times for him to enter. These therefore are swing entries.
It is important to understand that most swing setups do not lead to swing trades. As soon as traders are disappointed, many exit. Those who exit prefer to get out with a small profit (scalp), but often have to exit with a small loss.
If the risk is too big for your account, you should wait for trades with less risk or trade an alternative market like the Micro Emini.