Emini and Forex Trading Update:
Thursday March 18, 2021
I will update again at the end of the day.
Pre-Open market analysis of daily chart
- Yesterday traded below Tuesday’s low and then above its high following the FOMC announcement. Yesterday was therefore an Emini outside up day. The Emini also made another new all-time high.
- 10-day rally in tight bull channel so traders expect higher prices.
- Testing 4,000 Big Round Number, and reversals often come from just below major resistance.
- A reversal down today would create 6-day micro wedge top. If today closes in its lower half, it will be sell signal bar for tomorrow on the daily chart.
- If the week closes below the open of the week, this week will have a bear body and be a sell signal bar on the weekly chart.
Overnight Emini Globex trading on 5-minute chart
- Down 25 points in Globex session.
- Overnight selloff has been in Spike and Channel Bear Trend, so traders should expect break above bear trend line, and at least a couple hours of sideways to up trading today.
- Open of week has been magnet all week, and week ends tomorrow. Bears want week to close below the open, so that this week will have a bear body, and be a sell signal bar on weekly chart.
- As always, if there is a series of strong trend bars in either direction in the 1st hour, traders will look for a strong trend day.
Yesterday’s Emini setups
EURUSD Forex market trading strategies
EURUSD Forex daily chart
- Yesterday might be the 2nd leg sideways to up from the March 9 wedge bottom. If so, today could be forming double top bear flag.
- Because of wedge on weekly chart (see last weekend report), market should reach November 4 low at some point, before breaking above January high.
Overnight EURUSD Forex trading on 5-minute chart
- Trending down in overnight session, and reversed most of yesterday’s rally. Since in bear channel, bears prefer to sell rallies, and many are now scalping.
- Since Spike and Channel Bear Trend, bulls are willing to buy reversals up for scalps.
Summary of today’s S&P Emini futures price action and what to expect tomorrow
End of day summary
- Double bottom pullback led to 2-hour rally.
- Rally lacked strong breakouts and was likely going to be wedge bull channel in trading range or a bull trap.
- Strong selloff in 2nd half of day to below yesterday’s low. Likely to get follow-through selling tomorrow and maybe for several days.
- Tomorrow is Friday so weekly support and resistance can be important at end of day. Targets open and low of week.
See the weekly update for a discussion of the price action on the weekly chart and for what to expect going into next week.
Traders can see the end of the day bar-by-bar price action report by signing up for free at BrooksPriceAction.com. I talk about the detailed S&P Emini futures price action real-time throughout the day in the BrooksPriceAction.com trading room. We offer a 2 day free trial.
Charts use Pacific Time
When I mention time, it is USA Pacific Time (the Emini day session opens at 6:30 am PT, and closes at 1:15 pm PT). You can read background information on the intraday market reports on the Market Update page.