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E-mini: Will It Test 4,000 Today?

By Al BrooksStock MarketsMar 16, 2021 10:25AM ET
www.investing.com/analysis/emini--will-it-test-4000-today-200567578
E-mini: Will It Test 4,000 Today?
By Al Brooks   |  Mar 16, 2021 10:25AM ET
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The E-mini formed a bull bar that closed near its high yesterday, and this is within a strong 8-day rally (E-mini triggered High 1 buy signal). The bulls want the E-mini to break strongly above 4,000 this week.

With yesterday closing near its high yesterday, today will probably trade at least a little higher. It might even gap up, and It should test 4,000 today or tomorrow.

The bears hope that today sells off. That would create a micro double top with Thursday’s high and a double top with the Feb. 16 high. However, today they would need the E-mini to close on its low to attract sellers tomorrow, given how strong the 8-day rally has been. Traders expect higher prices.

It is important to note that there is an FOMC announcement 11 am PST tomorrow. Financial markets often get neutral and quiet ahead of the report. That slightly reduces the chance of a big trend day today.

Overnight E-mini Globex Trading

The E-mini is up 4 points in the Globex session. It might gap up today. If it does, the gap will probably be small. Small gaps typically close in the first hour.

Yesterday had a climactic rally into the close. While that is a sign of strong bulls, it typically will attract some profit taking. There is a 75% chance of at least a couple hours of sideways to down trading, that begins by the end of the 2nd hour today.

Also, the day after an extreme buy climax day only has a 25% chance of being another strong bull trend day. If today is a bull trend day, it will more likely be a weaker type, like a bull channel of a Trending Trading Range Day.

That big rally at the end of the day was a breakout. A move like that typically leads to a measured move up or down within a few days. Up is more likely. However, 20% of the time, it is a bull trap, and immediately reverses down. In this case, it was yesterday’s second leg up. If it were to reverse down on the open, the rally would be a 2nd Leg Bull Trap.

Yesterday’s Setups

E-mini bull trend reversal and E-mini triggered high 1 buy signal
E-mini bull trend reversal and E-mini triggered high 1 buy signal

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. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day (see Online Course/BTC Daily Setups).

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.

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.

E-mini: Will It Test 4,000 Today?
 

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E-mini: Will It Test 4,000 Today?

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Comments (4)
The Surfer Trader
The Surfer Trader Mar 19, 2021 4:36PM ET
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Great analysis! Thanks for being the best contrarian indicator in the market for me, sorry for noobs but I have warned them this week, it's been very hard to see this year after year but rest assure I'm done I'm nobody's dad already have 3 kids.
The Surfer Trader
The Surfer Trader Mar 18, 2021 9:40PM ET
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Look what I've found in October 2019. You said:Also, I have been saying for the past couple years that there would probably be around a 40% correction within 3 - 5 years. This is now 2 years later so I now think it will happen within 2 – 3 years. Clock is ticking loool
John Quinn
John Quinn Mar 18, 2021 9:40PM ET
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LOL, the "Ive been saying" line he uses is such a hustle. He includes several possible price directions, accompanied with completely arbitrary and baseless "odds", then, after the fact, he'll circle back to whichever direction was closest to reality and attach his "I've been saying" to it.  What arrogance it must take to employ this blatant hustle over and over.
The Surfer Trader
The Surfer Trader Mar 18, 2021 2:49PM ET
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Wrong wrong wrong wrong and wrong again
The Surfer Trader
The Surfer Trader Mar 16, 2021 12:07PM ET
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Yesterday was a green day near a big round number. Tomorrow who knows, but let me say some words on it just for entertainment. When you start a financial analysis article with a question says it all. You should start your articles buy disclaiming you haven't got a clue.
Michael Luchini
Michael Luchini Mar 16, 2021 12:07PM ET
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Didnt he say like 2-3 days ago it would close close to 400 but not all the way there? Seems to wishy washy for my liking.
The Surfer Trader
The Surfer Trader Mar 16, 2021 12:07PM ET
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Always spot on. There's goes his theory of round numbers whatever that is.
 
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