Emini double top with February 27 but tight bull channel
I will update around 6:45 a.m.
Pre-Open market analysis
By trading above last week’s high, this week is now an entry bar on the weekly chart. Last week was the buy signal bar. The bulls want a big bull trend bar on the weekly chart this week. But, the weekly chart has been in a tight range for 5 weeks. That reduces the chances of a big bull breakout this week.
The Emini paused yesterday at the February 27 high. The bears still want a double top with that high and a reversal down. Since yesterday was not a big bear day, it is a lower probability sell signal bar for today. Also, the momentum up has been strong for 2 weeks.
The bulls want a strong breakout above that February 27 major lower high on the daily chart. Yet, yesterday’s hesitation makes sideways more likely than up today. Since a big bear day is also unlikely after the 2 week strong rally, today will probably be another trading range day.
Overnight Emini Globex trading
The Emini is up 9 points on the Globex chart. It is trying to break strongly above the February 27 major lower high and the 2800 Big Round Number. If they succeed, they will then try to test the all-time high.
The bears want a double top with yesterday’s high. That would create a micro double top on the daily chart. It would therefore be a higher probability sell signal for a double top with the February 27 high.
Because yesterday was a trading range day at resistance, there is an increased chance that today will be another trading range day. Since the daily chart is at resistance, there is also an increased chance of a big trend day up or down. However, a trading range is more likely. Traders need to see a strong breakout up or down before they will bet on a trend day.
Yesterday’s setups
Here are several reasonable stop entry setups from yesterday. I sometimes also show limit order entries and entries on the close of bars.