Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

S&P 500 E-Mini in a Wedge Top at Resistance: What's Next?

By Al BrooksStock MarketsNov 30, 2023 09:34AM ET
www.investing.com/analysis/sp-500-emini-in-a-wedge-top-at-resistance-whats-next-200644031
S&P 500 E-Mini in a Wedge Top at Resistance: What's Next?
By Al Brooks   |  Nov 30, 2023 09:34AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
ESH24
-0.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Emini daily chart

  • o    The S&P 500 Futures has formed a wedge top over the past 12 trading days at the September 1st magnet. This will increase the odds of two legs going sideways to down and at the test of the 20-period moving average.
  • o    Although the channel up is tight, some bulls will exit below yesterday’s bear reversal bar and wait for another buy signal bar before entering again.
  • o    The longer the market goes sideways at this price level, the less traders will want to buy far away from the moving average.
  • o    The bears are hopeful that the test of the moving average will lead to a strong downside breakout causing the bulls not to be eager to buy the pullback.
  • o    The bulls want to prevent the bears from forming a strong entry bar. Even if today is a weak bear entry bar, it will probably lead to a bad High 1 buy signal bar with sellers above.

Emini 5-minute chart and what to expect today

  • o    Emini is up 3 points in the overnight Globex session.
  • o    The Emini rallied during the early morning Globex hours and reversed down after testing yesterday’s 1:15 PM EST lower high.
  • o    The bears want the market to form a double-top bear flag and test down to yesterday’s low. Next, the bears want a measured move down of the range mentioned above. The market will likely continue to go sideways and disappoint swing traders.
  • o    Traders should assume that today will have a lot of trading range price action on the open. This means most traders should consider waiting for 6 – 12 bars before placing a trade unless they are comfortable with limit order trading and making quick decisions.
  • o    Most traders should look to catch the opening swing trade. There is at least an 80% chance of an opening swing trade that often begins before the end of the second hour after forming a double top/bottom or a wedge top/bottom.
  • o    Traders should pay attention to the open of the day, as well as yesterday’s low. Traders will try and get follow-through selling and a close below yesterday’s low.

Yesterday’s Emini setups

Emini chart
Emini 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 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 in a Wedge Top at Resistance: What's Next?
 

Related Articles

S&P 500 E-Mini in a Wedge Top at Resistance: What's Next?

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.
 
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