S&P 500 E-Mini Bears Want Sellers Above March 8 High
Al Brooks | Mar 13, 2024 09:51AM ET
- The strong entry bar formed in S&P Emini following Monday’s High 1 buy signal bar. The bears are hopeful that there are sellers above March 8th.
- The bull see a tight bull channel on the daily chart. They will continue to buy any pullback until one fails, leading to a strong downside breakout.
- While the bears do a good job collecting bear bars on the daily chart, they need to create more selling pressure.
- Ideally, the bears need to get closes below the moving average to convince traders that the market is evolving into a trading range.
- Without it, traders will assume that the market will continue to rally sideways to up.
- The bulls are hopeful that today will be another strong follow-through bar, closing above last Friday’s high.
- The bears need the opposite. They need to prevent the bulls from getting a strong bull close and, ideally, create a bear reversal bar closing near its low.
- Emini is up 1 point in the overnight Globex session.
- The market is going to open with little to no gap.
- Traders should assume that yesterday’s high will be a magnet as bulls try to create follow-through buying and bears try to prevent it.
- As always, traders should assume that today, there will be a lot of trading range price activity, and they will go sideways for the first hour.
- Most traders should consider not trading for the first 6-12 bars on the open unless they are able to make quick decisions.
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 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.
Get The News You Want
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.
/h2
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.