{"id":169765,"date":"2023-02-06T06:20:00","date_gmt":"2023-02-06T14:20:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=169765"},"modified":"2023-02-06T20:08:02","modified_gmt":"2023-02-07T04:08:02","slug":"emini-likely-close-below-open-2","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/emini-likely-close-below-open-2\/","title":{"rendered":"Emini Likely Close below Today&#8217;s Open"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Trading Update: Monday February 6, 2023<\/h3>\n\n\n\n<h2 class=\"wp-block-heading\">Emini pre-open market analysis<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Emini daily chart<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Emini sold off late last Friday and closed as a weak bull trend bar.<\/li>\n\n\n\n<li>The bulls have a decent breakout with follow-through above the December 13<sup>th<\/sup> high. However, the past 10 out of 12 bars have had bull closes, which is climactic behavior. This will increase the odds of an Emini likely close below open today or tomorrow.<\/li>\n\n\n\n<li>The bears want the breakout above the December 13<sup>th<\/sup> high to fail.<\/li>\n\n\n\n<li>If the bears can get enough selling pressure, it will increase the odds of a test of the January 30<sup>th<\/sup> low.<\/li>\n\n\n\n<li>While the odds favor a pullback lasting a day or two, the odds also favor the bulls getting a second leg up. The rally up to February 2<sup>nd<\/sup> was strong enough to get a second leg up likely.<\/li>\n\n\n\n<li>Some of the bulls who bought the February 2<sup>nd<\/sup> follow-through bar were disappointed by last Friday\u2019s gap down, and they sold out of longs during the test of the February 2<sup>nd<\/sup> close.<\/li>\n\n\n\n<li>Since the daily chart is in a trading range, this will increase the odds of the bulls being disappointed with any potential second leg up following last week\u2019s breakout.<\/li>\n\n\n\n<li>Overall, traders should expect sideways over the next couple of days as traders decide if last week\u2019s breakout will have a second leg up. At the moment, the odds favor the bulls getting a second leg up after any pullback.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Emini 5-minute chart and what to expect today<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Emini is down 30 points in the overnight Globex session.<\/li>\n\n\n\n<li>The Globex market has been in a bear channel for most of the overnight session.<\/li>\n\n\n\n<li>The Globex session had a bear breakout around 3:00 AM PT. However, the bulls were able to get a strong pullback around 5:00 AM PT.<\/li>\n\n\n\n<li>The strong selloff and reversal down increase the odds of more sideways and trading range price action on the open.<\/li>\n\n\n\n<li>Traders should consider not trading the first 6-12 bars unless they are comfortable with limit order trading.<\/li>\n\n\n\n<li>Traders can also consider waiting for a credible stop entry swing trade in the form of a double top\/bottom or a wedge top\/bottom.<\/li>\n\n\n\n<li>Traders should pay close attention to the open of the day since the odds favor a close below the open today or tomorrow.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Emini intraday market update<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The market gapped down and went sideways for the first 9 bars of the day.<\/li>\n\n\n\n<li>The first 9 bars had decent bull bars closing above their midpoints, which reduced the chances of the day being a strong bear trend day.<\/li>\n\n\n\n<li>Because the market had a gap down, the odds favored the bears getting at least a small 2<sup>nd<\/sup> leg down after the opening gap down, which is what happened on the selloff to bar 12.<\/li>\n\n\n\n<li>The bulls got a strong reversal up to the moving average around bar 18 (8:00 AM PT).<\/li>\n\n\n\n<li>I am writing this at 8:30 AM PT, and the market is Always In<\/li>\n\n\n\n<li>&nbsp;Long, and likely seen the low of the day. Traders should expect the first reversal down to find buyers and lead to sideways to up trading.<\/li>\n\n\n\n<li>The bulls will try to get a measured move up of the range of the opening 12. However, the selling pressure is probably too great, and the upside will likely be limited.<\/li>\n\n\n\n<li>The bulls want today to be a High 1 buy signal closing on its high on the daily chart.<\/li>\n\n\n\n<li>Traders should be prepared for the market to go sideways for several hours and decide on trend resumption or trend reversal, starting around 11:00 AM PT.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Friday&#8217;s Emini setups<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/Emini-bull-trend-from-the-open-and-then-nested-wedge-top-and-head-and-shoulders-top-for-major-bear-trend-reversal.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/Emini-bull-trend-from-the-open-and-then-nested-wedge-top-and-head-and-shoulders-top-for-major-bear-trend-reversal-680x383.png\" alt=\"Emini bull trend from the open and then nested wedge top and head and shoulders top for major bear trend reversal. Emini likely close below open today.\" class=\"wp-image-169795\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/Emini-bull-trend-from-the-open-and-then-nested-wedge-top-and-head-and-shoulders-top-for-major-bear-trend-reversal-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/Emini-bull-trend-from-the-open-and-then-nested-wedge-top-and-head-and-shoulders-top-for-major-bear-trend-reversal-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/Emini-bull-trend-from-the-open-and-then-nested-wedge-top-and-head-and-shoulders-top-for-major-bear-trend-reversal-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/Emini-bull-trend-from-the-open-and-then-nested-wedge-top-and-head-and-shoulders-top-for-major-bear-trend-reversal.png 960w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<p><em>Al created the SP500 Emini charts.<\/em><\/p>\n\n\n\n<p class=\"caption\">Here are several reasonable stop entry setups from Friday. 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 much more detailed explanation of the swing trades for each day (see Online Course\/BTC Daily Setups).<\/p>\n\n\n\n<p class=\"caption\">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.<\/p>\n\n\n\n<p class=\"caption\">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.<\/p>\n\n\n\n<p class=\"caption\">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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">EURUSD Forex market trading strategies<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">EURUSD Forex daily chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/EURUSD-Daily-Strong-Bear-Breakout-2nd-Leg-Down-Likely.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/EURUSD-Daily-Strong-Bear-Breakout-2nd-Leg-Down-Likely-680x383.jpg\" alt=\"EURUSD Daily: Strong Bear Breakout, 2nd Leg Down Likely\" class=\"wp-image-170045\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/EURUSD-Daily-Strong-Bear-Breakout-2nd-Leg-Down-Likely-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/EURUSD-Daily-Strong-Bear-Breakout-2nd-Leg-Down-Likely-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/EURUSD-Daily-Strong-Bear-Breakout-2nd-Leg-Down-Likely-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/EURUSD-Daily-Strong-Bear-Breakout-2nd-Leg-Down-Likely-1536x864.jpg 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/EURUSD-Daily-Strong-Bear-Breakout-2nd-Leg-Down-Likely.jpg 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The bears got a strong bear breakout last Friday, and now they have two consecutive bear trend bars.<\/li>\n\n\n\n<li>The downside breakout is strong enough to get at least a small second leg down.<\/li>\n\n\n\n<li>The market is now in a trading range and may have to test down close to the January 6<sup>th<\/sup> low.<\/li>\n\n\n\n<li>While the bulls did a good job forming a small pullback bull trend, because of the weekly chart, the odds were against the small pullback trend lasting for a long time.<\/li>\n\n\n\n<li>The weekly chart will likely need to form a higher low major trend reversal, which means the daily chart will have to test down lower. &nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Summary of today&#8217;s S&amp;P Emini futures price action and what to expect tomorrow<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/Emini-double-top-and-then-sell-climax-bear-trap-but-rally-led-to-wedge-top-and-expanding-triangle-with-close-near-the-open-for-trading-range-doji-day.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/Emini-double-top-and-then-sell-climax-bear-trap-but-rally-led-to-wedge-top-and-expanding-triangle-with-close-near-the-open-for-trading-range-doji-day-680x383.png\" alt=\"Emini double top and then sell climax bear trap but rally led to wedge top and expanding triangle with close near the open for trading range doji day\" class=\"wp-image-170061\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/Emini-double-top-and-then-sell-climax-bear-trap-but-rally-led-to-wedge-top-and-expanding-triangle-with-close-near-the-open-for-trading-range-doji-day-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/Emini-double-top-and-then-sell-climax-bear-trap-but-rally-led-to-wedge-top-and-expanding-triangle-with-close-near-the-open-for-trading-range-doji-day-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/Emini-double-top-and-then-sell-climax-bear-trap-but-rally-led-to-wedge-top-and-expanding-triangle-with-close-near-the-open-for-trading-range-doji-day-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/Emini-double-top-and-then-sell-climax-bear-trap-but-rally-led-to-wedge-top-and-expanding-triangle-with-close-near-the-open-for-trading-range-doji-day.png 960w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<p><em>Al created the SP500 Emini charts.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">End of day review<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Emini gapped down and went sideways in a trading range for most of the day.<\/li>\n\n\n\n<li>The market sold off, forming a wedge bottom around the day\u2019s low, and rallied to a new high of the day around 10:30.<\/li>\n\n\n\n<li>This was a big up, big down open that increased the odds of the market going sideways for the rest of the day.<\/li>\n\n\n\n<li>The reversal up around bar 12 was strong enough that there would likely be buyers below any pullbacks scale in lower, which is why the selloff failed around 7:00 AM PT, and the market reversed up.<\/li>\n\n\n\n<li>Overall, today was a trading range day. It is important to look to sell in the upper 1\/3<sup>rd<\/sup> of the range after 2-3 legs up. The opposite goes for the bottom of the range.<\/li>\n\n\n\n<li>The bulls got another bull close on the daily chart, which increases the odds of tomorrow getting a bear close below the open.<\/li>\n<\/ul>\n\n\n\n<p><em>See the <a rel=\"noreferrer noopener\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/analysis\/\" target=\"_blank\">weekly update<\/a> for a discussion of the price action on the weekly chart and for what to expect going into next week.<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\" \/>\n\n\n\n<h2 class=\"wp-block-heading\">Trading Room<\/h2>\n\n\n\n<p>Al Brooks and other presenters talk about the detailed Emini price action real-time each day in the BrooksPriceAction.com <a href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\" target=\"_blank\" rel=\"noreferrer noopener\">trading room<\/a> days. We offer a <a href=\"http:\/\/www.brookspriceaction.com\/portal.php?page=11\" target=\"_blank\" rel=\"noreferrer noopener\">2 day free trial<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\" \/>\n\n\n\n<h3 class=\"wp-block-heading\">Charts use Pacific Time<\/h3>\n\n\n\n<p>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 <a href=\"https:\/\/www.brookstradingcourse.com\/blog\/market-update\/\" target=\"_blank\" rel=\"noreferrer noopener\">Market Update<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\" \/>\n","protected":false},"excerpt":{"rendered":"<p>Trading Update: Monday February 6, 2023 Emini pre-open market analysis Emini daily chart Emini 5-minute chart and what to expect today Emini intraday market update Friday&#8217;s Emini setups Al created the SP500 Emini charts. Here are several reasonable stop entry setups from Friday. I show each buy entry with a green rectangle and each sell [&hellip;]<\/p>\n","protected":false},"author":5460,"featured_media":169795,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[153,136],"tags":[281,60],"class_list":{"0":"post-169765","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-market-update","8":"category-analysis","9":"tag-eurusd-forex","10":"tag-sp-emini","11":"entry","12":"override","13":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/02\/Emini-bull-trend-from-the-open-and-then-nested-wedge-top-and-head-and-shoulders-top-for-major-bear-trend-reversal.png","author_info":{"display_name":"Brad","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/brad-wolff\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/169765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/5460"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=169765"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/169765\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/169795"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=169765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=169765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=169765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}