Pre-Open market analysis
The Emini made 2 new all-time highs last week. Additionally, June is now a buy signal bar for July on the monthly chart. The bulls will try to have June close near its high to increase the chance of higher prices over the next couple months.
On the daily chart, Friday was a small bear reversal day. It is therefore a sell signal bar for today. But the June rally was strong and the 2 week bull channel has been tight. Traders expect the 1st reversal to be minor.
The tight trading range from 2 weeks ago is a potential Final Bull Flag and therefore a magnet below. However, the odds continue to favor higher prices over the next couple months, even if there is a pullback to 2900 1st.
Overnight Emini Globex trading
The Emini is up 6 points in the Globex session. Friday is a sell signal bar for a failed breakout to a new all-time high. Its low is not far below. Consequently, today will probably trade below Friday’s low and trigger the sell signal. Traders want to know if there will be more buyers or sellers below. Will a 1 – 3 day pullback begin today, or will the bears need a micro double top first?
Because the past 2 days were sideways, today will likely have a lot of trading range price action again. This is especially true ahead of the G20 Summit and China talks at the end of the week.
Since the breakout to a new high has been small, the odds favor a pullback this week. It might test back down to the tight trading around just below 2900 on the daily chart.
Here are several reasonable stop entry setups from Friday. 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.