Pre-Open market analysis
Yesterday was an FOMC announcement day. Yet, the Emini was sideways after the report. The Emini is in a strong bull trend on all higher time frames. However, the rally is climactic. Since climaxes can go a long want, the bears still should wait to sell on the daily chart. Yesterday is still a sell signal bar for the parabolic wedge top.
The Emini has been in a tight trading range for 2 days and is therefore in breakout mode.
Overnight Emini Globex trading
The Emini is up 5 points in the Globex market. Since the 2500 Big Round Number is resistance and the Emini is close, it is within its magnetic field. Therefore, the bears might not get a reversal until the Emini reaches this psychological target.
The rally on the 60 minute Globex chart is trying to reverse down from above yesterday’s high. If the bears are successful, that would be an expanding triangle top. The initial target for the bears would then be the bottom of the triangle, which is yesterday’s Globex low.
Yesterday’s setups
Here are several reasonable stop entry setups from yesterday. I sometimes also show limit order entries and entries on the close of bars.