Emini Bears Want Close below Moving Average

Trading Update: Friday March 15, 2024

S&P Emini pre-open market analysis

Emini daily chart

• The Emini sold off yesterday after Wednesday’s bear inside bar at the top of a tight trading range. The bears want to get a close below the moving average at a minimum.
• The bears are doing a good job accumulating bear bars, which is a sign of increasing selling pressure.
• Next, the bears need to begin to get strong consecutive bear trend bars, ideally closing below the moving average.
• If the bears can begin to collect bars below the moving average, that would be a sign of increased selling pressure and increase the odds of a trading range.
• Without closes below the moving average, bulls will continue to see the market as In a tight bull channel.
• Overall, the bears need more signs of strength before they can gain control of the market. There is a need for a strong trendline break below the moving average and a minimum retest of the highs. Without it, traders will assume a bull channel is more likely.

Emini 5-minute chart and what to expect today

• Emini is down 10 points in the overnight Globex session.
• The Globex market rallied during the early morning hours and reversed down recently.
• At the moment, the market will likely open with a small gap down.
• The bears want follow-through selling today to get closer to the daily moving average.
• Today is Friday, so weekly support and resistance are important. Traders should be prepared for a surprise breakout late in the day as traders decide on the close of the weekly chart.
• Traders should also pay attention to the week’s open as it will likely be a magnet for most of the day.

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.

EURUSD Forex market trading strategies

EURUSD Forex daily chart

• The EURUSD sold off yesterday, testing the February 22^nd breakout point high.
• The bears are hopeful that today will be another strong bear trend bar, closing below the moving average.
• More likely, today will disappoint the bears and be a bath follow-through bar for the bears.
• Yesterday is enough of a bear surprise that the odds favor at least a small 2^nd leg down.
• Traders will pay attention to what kind of follow-through the bears can get today. The odds favor sideways more than straight down.

Summary of today’s S&P Emini price action

Al created the SP500 Emini charts.

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.

---