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 began with an expanding triangle bear flag and then an expanding triangle bottom, which led to a two-legged bull trend.
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.
Traders can see the end of the day bar-by-bar price action report by signing up for free at BrooksPriceAction.com. I talk about the detailed Emini price action real-time throughout the day in the BrooksPriceAction.com trading room, and a 2 day free trial is available.
When I mention time, it is USA Pacific Standard Time (the Emini day session opens at 6:30 am PST, and closes at 1:15 pm PST). You can read background information on the intraday market reports on the Intraday Market Update page.
not sure why this is described as outlook for tomorrow’s price action when all i see is Al describing past price action from the last trade day. Am i missing something? i thought maybe he would give opinion on likely action tomorrow, if that is even possible. thanks
Yes, it was a small PB bull trend and the bears only owned one bar.
Al,
Would you classify the second half of the day as a textbook small PB Bull with 1 PB twice as large as the rest?
Thanks for your help as always