Pre-Open market analysis
The Emini triggered a weak sell signal yesterday buy trading below Wednesday’s low. Therefore, the odds are that the Emini will continue the 6 day developing trading range before deciding on the direction of its next leg. The odds still favor a test below the 2017 close before a new high.
Today is Friday and therefore today’s close will affect the appearance of the weekly chart. While the bears want the week to close on its low and the bulls want it to close on its high, Tuesday’s reversal up after a sell climax creates confusion. Confusion typically leads to a trading range. Yesterday’s close was near the 2763.50 open of the week. The odds are that today will close around there as well. The week then would be a doji bar, which is a sign of a neutral market.
Overnight Emini Globex trading
The Emini is up 10 points in the Globex session. Since yesterday reversed up from a wedge bottom, there is an increased chance of a trend day today. Day traders will be ready for either a reversal up or a break below the wedge bottom.
However, the Emini might continue in it 4 hour trading range for many more hours before there is a breakout up or down. This is especially true since it is near the open of the week and today is Friday. On Friday’s, especially in the final hour, weekly magnets often pull the market. Consequently, if the Emini is within about 10 points of the open of the week after 11 or 12 o’clock today, day traders will look for a reversal to the open. Furthermore, once at the open, there is often either a strong break beyond it or another reversal.
Yesterday’s 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. I rarely also show limit order entries and entries on the close of bars. 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.