Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

S&P 500 E-Mini: Test of February 23 High in the Cards

Published 02/29/2024, 09:59 AM
Updated 07/09/2023, 06:31 AM

S&P Emini pre-open market analysis

Emini daily chart

o    The S&P 500 Futures formed an Inside bar yesterday after Tuesday’s weak High 1 buy signal bar. This is trading range price action and increases the odds of sideways to up and a test of the February 23rd high.

o    While this is disappointing for the bulls, the odds favor sideways to up trading, compared to a strong downside breakout.

o    The bears are hopeful that they will be able to get a test down to the moving average. However, the follow-through selling ever since the February 23rd high has been disappointing. This will increase the odds of buying below as traders begin to buy.

Emini 5-minute chart and what to expect today

o    Emini is up 17 points in the overnight Globex session.

o    The Emini rallied during the morning report released at 8:30 AM EST.

o    Today will gap up above yesterday’s high and trigger a high 1 buy signal.

o    Because the gap up is large, the odds favor at least a small second leg up on the open. However, the market may have to go sideways first and test closer to the moving average.

o    Because the gap up is large and closing above many bars to the left, there is an increased risk of a trend day. If the market is going to get a trend, it is more likely to be a bull trend due to the gap up.

Yesterday’s Emini setups

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.