I will update again at the end of the day.
Pre-Open Market Analysis
On the daily chart, the bears have a parabolic wedge top at the 3,000 Big Round Number. However, they do not have a good sell signal bar or a micro double top. The 3-day selloff therefore is more likely a bull flag than the start of a bear trend.
Yesterday was a bull outside up day. It is therefore a buy signal bar for today. But the daily chart has been sideways for 5 days. In addition, there was mostly trading range price action for 3 days. This is not a particularly strong buy setup. Traders are still deciding if the Emini will have to pull back more before breaking strongly above 3,000.
Overnight Emini Globex Trading
The Emini is up 7 points in the Globex session. It therefore might gap up today. A breakout above yesterday’s high will trigger a buy signal on the daily chart.
Since the daily chart is in a bull trend and 3,000 is a magnet above, there is an increased chance of a bull trend day today.
Can today e a big bear trend day? That is unlikely since today is triggering a buy signal in a bull trend on the daily chart. Also, yesterday’s reversal up was strong enough to have at least some follow-through today.
Emini S&P 500
Here are several reasonable stop entry setups from yesterday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. I rarely also show limit order entries and entries on the close of bars. Buyers of the Brooks Trading Course have access to a much more detailed explanation of the swing trades for each day.
Emini Bull Flag At 3000 But Parabolic Wedge Top
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