S&P Emini Pre-Open Market Analysis
- The S&P 500 Emini Futures rallied last Friday and reversed down after testing the September 21st close.
- Last Friday was a Low 1 short. However, there are probably buyers below.
- The bulls still expect the September 18th low to get tested, and most below that September 29th is not a close enough test of the September 18th low.
- The bears want the September 18th breakout point low to stay open. Next, the bears want a breakout below the September 27th low and a test of 4,200.
- Overall, traders should expect a lot of trading range price action this week.
What to Expect Today
- Emini is down 10 points in the overnight Globex session.
- The bears formed a downside breakout, testing last Friday’s low during the Globex session.
- There are probably buyers below last Friday’s low, which means traders should be open to an opening reversal.
- As always, there is an 80% chance of a trading range open and a 20% chance of a trend from the open.
- This means traders should expect a trading range open until the market is trending.
Friday’s Emini Setups
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. 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 the 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.
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.