Trading Update: Wednesday March 22, 2023
Emini pre-open market analysis
Emini daily chart
- The Emini gapped up yesterday and formed a bull bar closing above its midpoint.
- The bulls will see yesterday as a successful breakout above a bear flag (March 13th low to March 16th high).
- Next, the bulls want measured move bear flag up, which projects up to around 4,150.
- At the moment, the market is Always In Long and likely going higher. Some bulls bought the March 6th low and got trapped on March 7th. Most of these bulls would exit and wait to buy again above a bull bar like March 15th.
- Since bulls got trapped buying the March 6th low, it will likely act as resistance, and the market will find sellers at the March 6th low.
- This means that the current rally might be a buy vacuum test of resistance (March 6th low).
- The bears want to form a lower high with the March 6th high. As long as the market is forming lower highs and lows, the bears can argue that it is in a bear trend. The problem the bears have is that the market is likely in a trading range, and developing decent buying pressure. This will increase the odds of the market testing near the March 6th high.
- Overall, traders should expect higher prices and a test of the March 6th low. The bulls have a breakout above March 16th. However, they need follow-through. This means that bears will try to form a bear body today and reverse yesterday’s bull close.
Emini 5-minute chart and what to expect today
- Emini is up 1 point in the overnight Globex session.
- The Globex market has been going sideways for most of the overnight hours.
- Traders should expect a lot of trading range trading on the open. This means traders should be prepared to trade with limit orders for the first 6-12 bars or wait.
- As I often say, most traders should wait for a credible swing trade on the open that usually begins before the end of the 2nd hour. Also, the opening swing will often happen after the formation of a double top/bottom or a wedge top/bottom.
- Overall, the bulls want follow-through today, and the bears want to undo the damage caused by yesterday’s bull bar.
Yesterday’s Emini setups
Al created the SP500 Emini charts.
EURUSD Forex market trading strategies
EURUSD Forex daily chart
- The EURUSD is likely Always In Long following the four consecutive bull bars. The bulls want a successful breakout above the March 15 high.
- Next, they want to reach the February 1st close. There will be some bulls that bought this close and scaled in lower. This means the market should get it at some point. However, it may pull back first.
- Overall, the best the bears can get is likely sideways for the next few days following the four consecutive bull closes. This means traders should expect sideways up for the next few days.
Summary of today’s S&P Emini futures price action and what to expect tomorrow
Al created the SP500 Emini charts.
End of day review
- Live stream video trial replacement of end of day review coming soon.
See the weekly update for a discussion of the price action on the weekly chart and for what to expect going into next week.
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.
Thanks Brad for the report. Today if not mistaken is an FOMC session.