Emini Downside Probably Limited Over Next 2 Days **EOD Video Review Added**

Trading Update: Thursday March 16, 2023

Emini pre-open market analysis

Emini daily chart

• The Emini reversed up from a bad Low 1 short yesterday and formed a bull reversal bar closing on its high. So Emini downside probably limited over next 2 days.
• The bulls will see this as a second entry buy, and they want a strong entry bar today, forcing the bears to exit.
• More likely, the bulls will be disappointed today, and it will not be a strong entry bar.
• The bulls have done a good job damaging the bear case. However, they still need to do more. Last week’s selloff was strong enough that the odds are the market will not go straight up. This means that sideways is more likely.
• The bears hope that a reversal up above yesterday’s buy signal will lead to a second entry short (Low 2). However, yesterday’s buy signal bar is strong enough to limit the downside for at least the next few bars.
• Overall, the market will probably continue sideways for several bars. The bulls want to reverse the market and get a close above the March 2^nd low, and the bears want to get a second leg down from last week’s selloff.

Emini 5-minute chart and what to expect today

• Emini is down 20 points in the overnight Globex session.
• The Globex market sold off overnight, testing the opening range of yesterday’s U.S. Session.
• The bulls are trying to form a higher lower of the last two days and rally during today’s day session.
• Traders should expect a trading range open and be cautious about trading the first 6 bars of the day.
• Most traders should focus on catching the opening swing trade that usually begins before the end of the second hour.
• Because of yesterday’s strong buy signal bar on the daily chart, traders should expect the downside to be limited.

Emini intraday market update

• The Emini went sideways on the open for the first hour. The market formed a double bottom with bar 1 and 12 and got an upside breakout above the neckline (bar 7).
• As of bar 27 (8:45 AM PT) the market has been in a strong bull trend. This is likely due to the daily chart forming a 2^nd entry buy and bears giving up above yesterday’s high.
• As strong as the bull trend is, it is becoming climactic, which increase the odds of a pullback soon. The best the bears can likely expect is sideways to the moving average, for at least the next several bars.
• Most bulls will probably look to take profits soon and wait for a pullback to the moving average.
• The bulls want today to close on its high and be a strong entry bar on the daily chart. The bears want to create as big of a tail on top as possible.
• Overall, traders should expect sideways and a test of the moving average over the next hour or two.

Yesterday’s Emini setups

Al created the SP500 Emini charts.

Here 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 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 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.

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.

EURUSD Forex market trading strategies

EURUSD Forex daily chart

• The market formed a surprise bear reversal bar yesterday. However, it is following a 5-bar bull micro channel.
• While yesterday’s bar is strong enough to have a 2^nd leg down probably, it will likely lead to disappointment for the bears.
• The market is forming a tight trading range, an expanding triangle. This means the market is deciding on trend reversal up or resumption down.
• The bulls need a strong reversal bar to undo the bear damaged caused by yesterday. Next, the bulls need a strong entry bar.
• Overall, the market is in a tight trading range and beginning to oscillate around the moving average. Until there is a clear breakout, there is no breakout. This means most traders should wait for a clear breakout with follow-through before trading.

Summary of today’s S&P Emini futures price action and what to expect tomorrow

Al created the SP500 Emini charts.

End of day video review

See the weekly update for a discussion of the price action on the weekly chart and for what to expect going into next week.

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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.

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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.

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