Trading Update: Wednesday September 6, 2023
S&P Emini pre-open market analysis
Emini daily chart
- The daily chart is forming a possible 2nd leg trap. The Bulls got a bull breakout with follow-through last week. However, it is a second leg up in the middle of an overall trading range.
- The bulls are hopeful that last week’s rally is strong enough for another leg up. Some bulls will scale in on any pullback.
- The bulls scaling into longs risk getting trapped by the possible 2nd leg trap.
- The bears are hopeful that the selloff over the past few trading days is strong enough to lead to a second leg down.
- The bears want to close the August 24 breakout point high, and the bulls will try their best to keep it open.
- Overall, traders will pay close attention over the next few days to see what kind of follow-through selling the bears can get. The bulls will try and reverse the market to end the possibility of a second leg trap.
Emini 5-minute chart and what to expect today
- Emini is down 10 points in the overnight Globex session.
- The overnight Globex market has been in a bear channel for several hours.
- The bulls will try and convert the bear channel into a trading range and get a rally on the open.
- Traders should expect a trading range open in the U.S. Session. This means traders should be ready for a limit order market.
- There is at least an 80% chance of a swing trade developing after the formation of a double top/bottom or a wedge top/bottom. It is common for the swing trade to form before the end of the second hour.
- If traders want a higher probability, they should wait for a clear breakout with follow-through.
- Lastly, traders should pay attention to yesterday’s low and the day’s open, as both will likely be magnets during the U.S. Session.
Emini intraday market update
- The Emini formed a bear trend from the open after gapping down.
- The selloff tested both the August 24th breakout point high and the August 2022 high, which was an important price level on the weekly chart.
- The bulls recently formed a strong reversal up, closing above the moving average on bar 46 (13:20 ET). The rally is enough to make the market Always In Long.
- While the bulls have done a good job getting a reversal up, they follow a strong bear trend. This means that the upside will probably be limited, and the bulls will likely become disappointed.
- The bulls are hopeful that they will get a reversal up to the midpoint of the day and have the market close around this price level.
Yesterday’s Emini setups
Richard created the SP500 Emini charts (Al travelling). Chart time is ET+12 hours.
EURUSD Forex market trading strategies
EURUSD Forex daily chart
- The EURUSD formed a possible second leg down following last week’s bull trap.
- The Bears did a good job getting follow-through selling yesterday. However, today will likely disappoint the bears by forming a bull bar or a weak doji.
- It is possible that the recent selloff over the past few days is a sell vacuum test of the May 31st low.
- The bulls hope they can form a double bottom with the May 31st low. To accomplish this, the bulls will need to form more buying pressure. At a minimum, the bulls need to form a micro double bottom.
- The bulls are hopeful that they will be able to get back to the August 30th high, which is the top of the Bull Trap. While the bulls will probably return to this price level, most traders will want to see more buying pressure before they are convinced the market will reach the August 30th close.
Summary of today’s S&P Emini price action
Richard created the SP500 Emini charts (Al travelling). Chart time is ET+12 hours.
End of day video review
Here is YouTube link if video popup blocked:
Emini End of Day Review – Wednesday September 6, 2023 – Brad Wolff
See the weekly update for a discussion of the price action on the weekly chart and for what to expect going into next week.
Trading Room
Al Brooks and other presenters talk about the detailed Emini price action real-time each day in the BrooksPriceAction.com trading room days. We offer a 2 day free trial.
Charts use Pacific Time
When times are mentioned, it is USA Pacific Time. The Emini day session charts begin at 6:30 am PT and end at 1:15 pm PT which is 15 minutes after the NYSE closes. You can read background information on the market reports on the Market Update page.