Premarket price action analysis
For tomorrow’s analysis, wait until after today’s close. Then, look at the bottom of this post for “Outlook for tomorrow’s Emini price action and day trading.”
If you want to see today’s premarket analysis, I posted it after yesterday’s close in yesterday’s blog at S&P500 Emini intraday market update.
S&P500 Emini intraday market update for price action day traders: tight trading range for scalping
Posted 7:20 a.m.
Today began with a tight trading range for scalping, and the market is in breakout mode. The Emini opened within the tight trading range that formed at the end of yesterday. Yesterday was a trading range day. The odds are that today will be the same. However, the Emini is still in the bull channel that began last week and the targets are the October 6 and 8 highs. The market should get there.
The bears got an expanding triangle bear flag, but the Emini then reversed up in an expanding triangle bottom. A triangle is a trading range, and the trading range price action from yesterday has continued for the first hour.
Swing traders are waiting for a strong breakout up or down with follow-through because then day traders will swing trade part of their position. Until then, they will be quick to take profits.
Outlook for tomorrow’s Emini price action and day trading
The Emini sold off early from an expanding triangle bear flag. This is usually followed by and expanding triangle bottom, which is a form of lower low major trend reversal. There was a pullback in the middle of the day as the bears tried to test down to the open, but they failed and the bull trend resumed into the close.
See the weekly update for a discussion of the weekly chart and for what to expect going into next week.