S&P Emini Pre-Open Market Analysis- The S&P Emini is getting a bull breakout of the bear flag (April 19th low and April 29th high). At the moment, the market is Always In Long, and will likely get a second leg up.
- The bulls are hopeful that today will become another strong bull bar closing on its high.
- The bears want to prevent the bulls from getting a bull bar closing on its high. They are hopeful that today is a bear reversal bar closing on its low. Even if the bears get a close below the open, the odds favor buyers below and a second leg up on the daily chart.
- The selloff down to the April low is the first major trendline break of the bull trend and, therefore, likely to become a minor reversal. This means that the odds favor a retest of the highs and the completion of a major trend reversal.
- Overall, the daily chart is Always In Long and likely going to get a second leg up.
What to Expect Today
- The Emini gapped up on the open of the U.S. Session.
- The Globex market has gone sideways for most of the overnight session and rallied a few hours before the open of the U.S. Session.
- The bulls want a second leg up due to the open likely getting a gap up.
Yesterday’s Emini Setups
Here are reasonable stop-entry setups from yesterday. I show each buy entry bar with a green arrow and each sell entry bar with a red arrow. 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 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.