Trading Update: Tuesday March 21, 2023
Emini pre-open market analysis
Emini daily chart
- The Emini rallied yesterday and formed an inside bar with last Friday’s Low. Emini bulls strong entry bar wanted following yesterday’s buy signal bar.
- The bulls want a bull breakout of a bull flag and a measured move up from the March low to the March 16th high, projecting up to around the 4,150 price level.
- The bears want any breakout above the March 16th high to fail, leading to a wedge top (March 14th and March 16th).
- March 16th is a surprise breakout, which will probably have a second leg up.
- The bulls that bought the rally up to March 6th expected a 2nd leg up, and they got trapped on the March 7th bear breakout. While most of these bulls likely took the loss on March 7th or March 8th, some bulls would use a wide stop and buy lower.
- This means that the March 6th low is a magnet for that trapped scale in bulls.
- The market is at the bottom of a trading range and trying to form a double bottom with the December 2022 low.
- Trading ranges often get bull breakouts of bear flags at the bottom of the trading range. This means traders should be prepared for a possible upside breakout and a rally back up to the March 6th low.
- For the bears to regain control, they will need to undo the damage caused by the bulls last week.
- Overall, traders should expect continued trading range price action; however, they should be open to a potential upside breakout over the next few days. Until there is a clear breakout above the March 6th high, there is no breakout. This means traders should expect a trading range until the breakout happens.
Emini 5-minute chart and what to expect today
- Emini is up 35 points in the overnight Globex session.
- The market has continued to rally during the overnight trading hours.
- Traders should expect a trading range open for the first 6-12 bars and consider not trading until after this time.
- Most traders should wait for a credible swing trade. A swing trade typically forms before the end of the second hour after the formation of a double top/bottom or a wedge top/bottom.
- Lastly, traders can wait for a clear breakout with follow-through and look to enter for a 2nd leg in the direction of the breakout.
- Traders should be open to the possibility of a bull trend day as the market tries to get a strong entry bar following yesterday’s buy signal bar. The bears want to opposite and a failed breakout.
- Traders should be open to a possible opening reversal down if the bulls manage to get a brief rally on the open. This would mean that there are sellers above yesterday’s buy signal on the daily chart.
Emini intraday market update
- No intraday update today. Brad traveling.
Yesterday’s Emini setups
Al created the SP500 Emini charts.
EURUSD Forex market trading strategies
EURUSD Forex daily chart
- The bulls are beginning to collect bull bars over the past four trading days.
- The bears failed to get a downside breakout on March 15th.
- At the moment, the market is probably Always In Long and likely going higher. Traders should be prepared for a possible upside breakout of the March 15th high.
- The bulls want a measured move up of the month-long trading range, and the bears want a failed breakout.
- Overall, the rally is strong enough that the first reversal up will probably fail.
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.