S&P 500 E-Mini Bears Want Sellers Above March 8 High

S&P Emini Pre-Open Market Analysis

Emini Daily Chart

• The strong entry bar formed in following Monday’s High 1 buy signal bar. The bears are hopeful that there are sellers above March 8th.
• The bull see a tight bull channel on the daily chart. They will continue to buy any pullback until one fails, leading to a strong downside breakout.
• While the bears do a good job collecting bear bars on the daily chart, they need to create more selling pressure.
• Ideally, the bears need to get closes below the moving average to convince traders that the market is evolving into a trading range.
• Without it, traders will assume that the market will continue to rally sideways to up.
• The bulls are hopeful that today will be another strong follow-through bar, closing above last Friday’s high.
• The bears need the opposite. They need to prevent the bulls from getting a strong bull close and, ideally, create a bear reversal bar closing near its low.

Emini 5-Minute Chart and What to Expect Today

• Emini is up 1 point in the overnight Globex session.
• The market is going to open with little to no gap.
• Traders should assume that yesterday’s high will be a magnet as bulls try to create follow-through buying and bears try to prevent it.
• As always, traders should assume that today, there will be a lot of trading range price activity, and they will go sideways for the first hour.
• Most traders should consider not trading for the first 6-12 bars on the open unless they are able to make quick decisions.

Yesterday’s Emini Setups

S&P 500 Emini Futures 5-Min Chart

Here are reasonable stop-entry setups from yesterday. I show each buy entry bar 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 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.