Pre-Open Market Analysis Of The Daily Chart
- Yesterday was a bear day but it had a prominent tail below. The E-mini traded below Monday’s low and the 3,900 Big Round Number, but closed above both, and therefore was not as bearish as it could have been. So, E-mini is in trading range.
- Yesterday closed at the open of week, so this week so far is neutral (Doji is inside the bar on the weekly chart).
- Bears hope that the sell off from the all-time high is an early Small Pullback Bear Trend, but we need consecutive big bear days closing near their lows to put odds in their favor.
- The bulls see the past five days as pullback from last week’s all-time high. We need a good buy signal bar for resumption up to the 4,000 Big Round Number.
- We're in the middle of a 2-week trading range. Slightly more likely to make a new high before the end of the month, because of the end of the quarter window dressing and strong early March rally.
- Most days for several weeks have had at least one swing up and one swing down. Traders will expect that again today. But if there is a series of strong trend bars up or down in the 1st hour, traders will bet on a trend day.
- The Market is deciding if there will be end of the quarter window dressing, and a test of 4,000 before end of the month. Bears want a reversal down from the higher high major trend reversal on the daily chart, and from head and shoulders top on the 60-minute chart.
Overnight E-mini Globex Trading On The 5-Minute Chart
- E-mini was up seven points in the Globex session.
- Yesterday saw a sell climax for several hours, so we'll probably get at least a couple hours of sideways to up trading today, that'll start by the end of the 2nd hour.
- Bulls hope that today will reverse up from a double bottom with the Mar. 19 low. A double bottom reversal would be pullback from the Mar. 19 rally.
- Bears want a strong break below the Mar. 19 low for a 60-minute head and shoulders top.
- Most days have had at least one swing in both directions, so traders expect that again today.
- E-mini's trading range for the past two has it in Breakout Mode. Traders are ready for a strong trend in either direction, but typically need a series of strong trend bars in the 1st hour. Without that, then they'll probably be a lot of trading range trading, like most recent days.
Tuesday's E-mini Setups
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.