Stock Markets Analysis & Opinion

S&P 500 E-Mini: Strong Entry Bar After Low

S&P E-mini Pre-Open Market Analysis

  • The S&P 500 E-Mini formed a strong entry bar after triggering the Low 2, last Thursday’s low.
  • While the signal bar for the second entry short (Low 2) was a bull bar, the entry bar (Last Friday) was a big bear breakout.
  • Last Friday’s breakout bar is a surprise, so there will probably be a second leg down.
  • The bears are hopeful that today will be another strong bear trend bar, increasing the odds of lower prices.
  • The bulls want the opposite and to form a strong bull reversal bar today, closing on its high.
  • More likely, today will not be another strong bear trend bar, which will disappoint the bears.
  • Even if today is a bull trend bar, there will probably be sellers above the high, and the bear will try for a second leg down after last Friday’s bear breakout.

What to Expect Today

  • E-mini is down 2 points in the overnight Globex session.
  • The Globex market was in a tight trading range for several hours and broke below last Friday’s low recently.
  • The bears are hopeful that they will get strong selling today; however, it is more likely that they will find buyers below last Friday’s low.
  • Traders should pay attention to last Friday’s low as it will likely act as support.
  • Traders should consider not trading during the first 6-12 bars unless they are comfortable with limit order trading.

Friday’s E-mini SetupsS&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 E-mini.


Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Become a Millionaire by Trading Crypto!