Trading Update: Thursday March 7, 2024
S&P Emini pre-open market analysis
Emini daily chart
- The Emini gapped up today after the March 5th test of the daily moving average.
- The market is testing the March 5th high and will probably find sellers as bulls begin to take partial profits as the market evolves into a trading range on the daily chart.
- The bulls are becoming less willing to buy at new highs. This increases the odds that traders will use any bounce to sell out of longs, and bears will scale into.
- The odds are the daily chart will transition into a trading range and continue to go sideways for the next several months.
- The bears need to get close below the moving average before the bulls will be convinced that the bears have a chance of lower prices. Even if they get below the moving average, the odds favor a trading range more than a bear trend.
Emini 5-minute chart and what to expect today
- The overnight Globex market rallied during the early morning hours and has been in a strong bull trend ever since.
- The best the bears can probably exit is a trading range day, not a bear trend day.
- Traders will expect the open to have a lot of trading range price action and likely test closer to the moving average.
- Traders can consider waiting for the market to form a double top/bottom or a wedge top/bottom since the market often forms one of the above-mentioned patterns before a swing trade begins.
- Because the market is going to gap on the open of the U.S. Session, the market will likely get at least a small second leg up.
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.
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.
