The e-mini gapped up on the weekly chart and triggered a weak High 2 buy signal. It also triggered a wedge bull flag buy signal on the daily chart. Yesterday closed back above the 50-day MA. Traders expect the Emini to test the lower high just above 3400.
However, yesterday was a trending trading range day on the 5 minute chart at both the 20-day EMA and the 50-day SMA. It might go sideways for another day or two before traders decide if the rally will continue up to 3400 or form a lower high. At the moment, traders expect at least slightly higher prices.
Overnight E-mini Globex trading
The e-mini is down 4 points in the Globex session. With yesterday being mostly sideways, daytraders expect a lot of trading range price action again today.
Even though the 3-day rally should work its way up to the September 16 lower high at around 3400, there will probably be a 1 – 2-day pullback starting this week. The 3-day rally has not had much of a pullback on the 5 minute chart. The e-mini is therefore short-term overbought. That increases the chance of a 1 or 2-day pullback this week. But it might wait until after tonight’s debate.
Yesterday’s Setups
Here are several reasonable stop entry setups from yesterday. 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. I do not want the lines to be distracting. If they are longer, I make them dotted. But, they have to be visible, so I make the shorter ones solid. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day (see Online Course/BTC Daily Setups).
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.
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.