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Emini Profit Taking on Daily Chart

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Trading Update: Tuesday March 5, 2024

S&P Emini pre-open market analysis

Emini daily chart

  • Last Friday, an upside breakout was formed late in a bull channel on the daily chart. While this is good for the bulls, the odds are there will be profit-taking soon.
  • Yesterday was a lousy follow-through bar for the Bulls.
  • The bulls buying above last Friday were momentum bulls. They were only willing to buy above last Friday, high as long as the momentum up appeared strong.
  • Those hopeful bulls gave up late yesterday as the market reversed below last Friday’s high.
  • The selloff last in the day yesterday was strong enough to increase the odds of lower prices and a test of last Friday’s low.

Emini 5-minute chart and what to expect today

  • Yesterday, a climatic selloff occurred late in the day. This will increase the odds of a trading range open.
  • There is a 75% of a trading range open lasting at least two hours beginning before the end of the second hour.
  • Most traders should wait for the market to form a double top/bottom or a wedge top/bottom.
  • Because the Emini gapped down, there is a greater risk of sideways trading on the open. This is due to traders wanting to sell closer to the moving average, which is a reflection of the fair price.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart Broad Bull Channel Failed Bull Breakout

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

SP500 Emini 5-Min Chart Bear Trend From The Open Then Late Rally

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.

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