Trading Update: Tuesday March 26, 2024
S&P Emini pre-open market analysis
Emini daily chart
- The Emini formed a consecutive bear bar yesterday on the daily chart.
- The odds are that the breakout point above the March 8th high will close. This means that bulls are hesitant to buy far away from the March 8th breakout point high.
- The bears are trying to get a reversal of last week’s bull breakout of the month-long triangle.
- However, the bears need to do more if they are going to get a successful reversal and test of the March 19th low and the moving average.
- The bear will try to create another bear bar closing below its low. That would be a sign of increasing selling pressure. While the bears have not created a deep pullback, they would own the market for four consecutive bars, which would control time.
- Overall, the market will likely test closer to the March 19th breakout point high, which increased a sell vacuum test of the breakout point.
Emini 5-minute chart and what to expect today
- Emini is up 10 points in the overnight Globex session.
- The Emini is likely to get a small gap up on the open of the U.S. Session.
- The bulls will try their best to close above the day’s open, which would disappoint the bears on the daily chart.
- The bears want a strong bear trend day, increasing the odds of lower prices on the daily chart.
- As always, traders should expect the open to have a lot of trading range price action.
- Because yesterday was a small range day, which will increase the risk of a possible outside day, today
Yesterday’s Emini setups
Al created the SP500 Emini charts.
Here are reasonable stop entry setups from yesterday. I show each buy entry bar with a green arrow and each sell entry bar with a red arrow. 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.
Summary of today’s S&P Emini price action
Al created the SP500 Emini charts.
End of day video review
End Of Day Review will be presented in the Trading Room today. See below for details on how to sign up.
See the weekly update for a discussion of the price action on the weekly chart and for what to expect going into next week.
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.
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.
