Yesterday had a big range so today could become an inside day. Bulls will look for a reversal up from above yesterday’s low. They need to create buying pressure and a credible bottom, like a final flag reversal. Otherwise, traders will wait for a strong bull reversal before being confident that the early selloff created the low of the day. <\/p>\n
As I write, the Emini is always in short, but the odds favor a trading range day. However, there is no bottom yet.<\/p>\n
Here are my thoughts before the open. Yesterday had a strong rally on the 60 minute chart after an even stronger selloff. Big down and big up usually results in a trading range. The 5 minute chart yesterday was in a bull channel, which usually transitions into a trading range. Yesterday ended with a 3 hour trading range. The odds are that the Emini will be in an early trading range. Swing traders will wait for a strong breakout with follow-through up or down. Until then traders will look to buy low, sell high, and mostly scalp.<\/p>\n
Day trading outlook for tomorrow\u2019s Emini price action<\/h2>\n
![\"Emini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2014\/12\/ES7-600x370.jpg\" "\\"\\"")
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The Emini was in a trend from the open bear trend. Although it went sideways for hours, it formed lower highs and lows within the trading range and was therefore also in a broad bear channel. There was a reversal attempt after consecutive sell climaxes, but it failed at the moving average.<\/p>\n
Yesterday was a bull channel and therefore a bear flag. Today is a bear channel and therefore a bull flag. The reversal up at the end of the day was strong enough to make bulls look for a major trend reversal tomorrow. However, the weekly chart is turning down from the top of the channel and from an expanding triangle top, and the monthly chart is very overbought<\/a>. Is this selloff the start of a bear trend<\/a>? Probably not, but it is too early to say. At a minimum, it looks like it will be a test of the September high and possibly the October 31 gap below 2000.<\/p>\n See yesterday’s intraday market update<\/a> report for today’s premarket analysis. Once there, scroll down to the heading, Day trading outlook for tomorrow’s Emini price action<\/em>.<\/p>\n See the weekly update<\/a> for a discussion of the weekly chart and for what to expect going into next week.<\/p>\n Traders can see the end of the day bar-by-bar price action report by signing up<\/a> for free at BrooksPriceAction.com. I talk about the detailed Emini price action real-time throughout the day in the BrooksPriceAction.com trading room<\/a>, and a 2 day free trial<\/a> is available.<\/p>\nPremarket price action analysis<\/h4>\n
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