E-mini Testing 4,000
Al Brooks | Feb 25, 2021 09:27AM ET
The E-mini had a 2nd strong bull day yesterday. This increases the chance of a test of the all-time high, and possibly the E-mini testing 4000 Big Round Number within the next couple weeks.
The bulls are trying to get February to close near its high tomorrow, and they would like the month to close at a new all-time high. Any close near the high of the month would increase the chance of higher prices in March.
Can today be a 3rd consecutive strong bull trend day on the 5-minute chart? After a buy climax day, there is only a 25% chance of another very strong bull day today. If today is a bull trend day, it will probably be a weaker bull trend, like a trending trading range day, or a broad bull channel.
Since yesterday was a buy climax day on the 5 minute chart, there is a 75% chance of at least a couple hours of sideways to down trading today starting in the 1st couple hours. It is probably too late in the month for the bears to erase the bullishness on the monthly chart this month, with only 2 days remaining.
h2 Overnight E-mini Globex trading/h2The E-mini is down 9 points in the Globex session. If it opens here, it will be at the bottom of the 2-hour trading range at the end of yesterday. Remember, the odds favor at least a couple hours of sideways to down trading, to begin by the end of the 2nd hour. It often begins on the open.
The odds are against a strong bull day after 2 strong bull days. Many bulls will take some profits on strong rallies. But the odds are also against a big bear day when the momentum up has been so strong. Today will probably be either a weak bull or bear trend day. Also, it will probably spend a lot of time going sideways. There should be at least one swing up and one swing down.
h2 Yesterday’s setups/h2Here 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. 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.
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