Emini S&P 500: Weak Entry Bar After Weekly Outside Up-Buy Signal
Al Brooks | Jun 13, 2019 11:15AM ET
I will update again at the end of the day.
h3 Pre-Open Market Analysis/h3Tuesday was an outside down bar on the Emini's daily chart. It is a sell signal bar for a double top with the May 16 high. Yesterday triggered the sell signal by trading below Tuesday’s low. But after a 6 bar bull micro channel, the reversal down will probably be minor. That means that the pullback will likely last only 1 – 3 days.
Because yesterday was a pullback in a bull trend, it is a High 1 buy signal bar for today. But it had a bear body and it followed a big outside down bar. This is a weak buy setup so there may be more sellers than buyers above its high.
This week triggered a buy signal on the weekly chart. But I said over the weekend that there might be a shortage of buyers above last week’s high. Last week was an exceptionally big bar on the weekly chart. The bulls who buy above its high would put a stop below its low. That is too much risk for many traders, especially at the top of an 18 month trading range. Many traders are hoping for a pullback so that they can buy and have a tighter stop.
With next Wednesday’s FOMC announcement being more important than usual, the Emini might simply go sideways until then. The past 3 days had a lot of trading range price action. That makes trading range price action likely again today.
h3 Overnight Emini Globex Trading/h3The Emini is up 7 points in the Globex session. However, the past 3 days had a lot of trading range price action. Also, yesterday is a weak buy setup for today. As a result, there might be more sellers than buyers above yesterday’s high. This reduces the chance of a big bull trend day today.
Yesterday ended with a double bottom higher low major trend reversal setup on the 5 minute chart. A gap above yesterday’s trading range today would be a continuation of the reversal up. Also, today will probably open near yesterday’s high. These factors reduce the chance of a big trend day today.
Next Wednesday’s FOMC meeting is more important than usual. This increases the chance that the 3 days of trading range price action will continue today.
h3 Yesterday’s Setups/h3Here 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. Buyers of the Brooks Trading Course have access to a much more detailed explanation of the swing trades for each day.
Get The News You Want
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.
/h3
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.