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Emini Buyers below Last Friday

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Trading Update: Monday October 2, 2023

S&P Emini pre-open market analysis

Emini daily chart

  • The Emini rallied last Friday and reversed down after testing the September 21st close.
  • Last Friday was a Low 1 short. However, there are probably buyers below.
  • The bulls still expect the August 18th low to get tested, and most below that September 29th is not a close enough test of the September 18th low.
  • The bears want the August 18th breakout point low to stay open. Next, the bears want a breakout below the September 27th low and a test of 4,200.
  • Overall, traders should expect a lot of trading range price action this week.

Emini 5-minute chart and what to expect today

  • The bears formed a downside breakout, testing last Friday’s low during the Globex session.
  • There are probably buyers below last Friday’s low, which means traders should be open to an opening reversal.
  • As always, there is an 80% chance of a trading range open and a 20% chance of a trend from the open.
  • This means traders should expect a trading range open until the market is trending.
  • Most traders should consider not trading the first 6-12 bars unless they are comfortable with limit order trading.
  • The market often forms the opening swing before the end of the second hour. It is common for the opening swing to begin after the formation of a double top/bottom, or a wedge top/bottom. A trader can often wait for one of the above patterns to form before looking to enter to catch the opening swing.
  • Lastly, the most important rule on open is to trade the chart before you, not what you hope will happen. One must never be in denial of the price action.

Friday’s Emini setups

SP500 Emini 5-Minute Chart Bear Trend From The Open Then Trading Range

Al created the SP500 Emini charts.

Here are several reasonable stop entry setups from Friday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. 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

EURUSD Daily: Sideways Likely After Low 1
  • The EURUSD formed a strong bear breakout to the September 27th close. The downside breakout is strong enough that the September 27th close will likely get tested.
  • Last Friday formed a Low 1; however, the signal bar is a bull bar following a strong bull reversal bar.
  • There are probably buyers below Last Friday’s low, however, the buyers may not show up until the market gets closer to the September 27th close.
  • While the bear channel that began in July is strong, it will likely convert into a trading range soon. This increases the odds of buyers not far below, and the market is testing the moving average (blue line).
  • The bears are hopeful that last Friday’s Low 1 will lead to strong selling below. This would trap bulls buying down last Friday’s Low 1, increasing the odds of buyers below.   
  • At the moment, the bears have a strong bear trend bar. However, today will probably disappoint the bears, and the market will find buyers before the end of the U.S. Session.

Summary of today’s S&P Emini price action

SP500 Emini 5-Minute Chart Expanding Triangle Open Trading Range Day

Al created the SP500 Emini charts.

End of day video review

Here is YouTube link if video popup blocked:

Emini End of Day Review – Monday October 2, 2023 – Brad Wolff

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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