Breaking News
Investing Pro 0
Final hours: unlock premium data with Claim 60% OFF

S&P 500 E-Mini Bulls Want Bears to Give Up

By Al BrooksStock MarketsOct 25, 2023 09:42AM ET
www.investing.com/analysis/sp-500-emini-bulls-want-bears-to-give-up-200643046
S&P 500 E-Mini Bulls Want Bears to Give Up
By Al Brooks   |  Oct 25, 2023 09:42AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
ESH24
+0.42%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

S&P Emini Pre-Open Market Analysis

  • The S&P Emini is stalling at the October 6th low. The bulls are trying to create enough buying pressure to force the bears to give up on the idea of another leg down.
  • The bears believe the recent three-bar breakout is strong enough for a second leg down.
  • The odds favor a second leg down and a test of the 4,200 and the midpoint (4,172) of the rally that began in October 2022.
  • It is that the market is forming a wedge bottom with August 18th, October 6th, and the final leg down being the current leg down.
  • The bulls who bought the rally up from the October 6th low are trapped in a losing trade due to the recent selloff. Some of those bulls are still long, deciding what to do. At the moment, the odds favor those bulls selling out of longs on any bounce and the market getting a second leg down.
  • However, if the market goes sideways and develops more bull bars, closing on their high, the bulls may hold onto the longs for a test of the October high.
  • Lastly, yesterday formed a Low 1 sell signal. However, it is a bull bar at support, which increases the probability of buyers below and sideways trading for a day or two. This means traders should pay attention to yesterday’s low as it will probably be a magnet.

What to Expect Today

  • Emini is down 15 points in the overnight Globex session.
  • The Globex market has been in a tight trading range for the past several hours. This means the market is in breakout mode going into this morning’s open.
  • Traders should be cautious about trading the first 6-12 bars as it often has several reversals. Most traders will be better off if they avoid trading during this time unless they are quick to make decisions.
  • There is an 80% chance of a trading range open and only a 20% chance of a trend from the open.
  • Yesterday formed a Low 1 on the daily chart. This means that yesterday’s low is a magnet and will probably act as support if the market gets down to it.
  • There is at least an 80% chance of an opening swing that will often begin before the end of the second hour. Most traders should focus on catching the opening because of the excellent risk reward it often provides.
  • It is common for the market to form a double top/bottom or a wedge top/bottom before the opening swing begins. This is because the market often forms a trading range open, and thus, one of the patterns mentioned above will often develop before there is a breakout.
  • Traders should expect today to have a lot of trading range price action and disappoint both the bulls and the bears.

Yesterday’s Emini Setups
S&P 500 Emini-5-Min Chart
S&P 500 Emini-5-Min Chart

Here are reasonable stop-entry setups from yesterday. I show each buy entry bar with a green arrow and each sell entry bar with a red arrow. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a near 4-year library of more detailed explanations of swing trade setups (see Online Course/BTC Daily Setups). Encyclopedia members get current daily charts added to the Encyclopedia.

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. These therefore are swing entries.

It is important to understand that most swing setups do not lead to swing trades. As soon as traders are disappointed, many exit. Those who exit prefer to get out with a small profit (scalp), but often have to exit with a small loss.

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 Emini.

S&P 500 E-Mini Bulls Want Bears to Give Up
 

Related Articles

S&P 500 E-Mini Bulls Want Bears to Give Up

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Naseer Ahmed
Naseer Ahmed Oct 26, 2023 4:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
03215
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email