The Emini had a big bear dayon Thursday, but it closed far above its low.Friday was also a trading range day. However, it was a bull inside bar on the daily chart and it closed on its high. It is therefore a buy signal bar for today. If today trades above Friday’s high, the odds favor at least slightly higher prices for today and tomorrow. Yet, the Emini is in an 8 bar tight trading range. Hence, the odds are that today will have a lot of trading range price action, even if it has a bullish bias.
Overnight Emini
The Emini is up 4 points on the daily chart. Since Friday was a bull ioi day, it is a buy signal bar today. The overnight rally increases the chances of the buy signal triggering today. Furthermore, there is enough room to Thursday’s high for a rally up to that level today. Consequently, there is an increased chance of a bull trend today. However, because most days over the past several months have had a lot of trading range price action, today probably will as well, even if it is a bull trend day.
Thursday’s bull reversal, Friday’s bull reversal, and the overnight bull momentum make a bear trend day less likely today.
Friday’s Setups
Here are several reasonable stop entry setups from Friday. I sometimes also show limit order entries and entries on the close of bars.