Trading Update: Thursday March 14, 2024
S&P Emini pre-open market analysis
Emini daily chart
- The Emini formed an inside bar yesterday, which is disappointing for the Bulls. This is a sign that the market if forming a trading range.
- The bulls are hopeful that yesterday is a pullback that will lead to a second leg-up follow-through Tuesday’s bull trend bar.
- Bears are continuing to close gaps above new highs. This increases the odds that the daily chart is evolving into a trading range and will go sideways soon.
- The bears ultimately need to get below the moving average in order to demonstrate that they are in control.
- Even if they get below the moving average, the odds favor a trading range, not a bear trend.
Emini 5-minute chart and what to expect today
- Emini is up 6 points in the overnight Globex session.
- The Globex market rallied during the early morning hours and recently sold off back to the midpoint of yesterday’s range.
- Traders should expect the open to have a lot of trading range price action.
- Because of Tuesday’s upside breakout, today will likely try to test above its high.
- This means that Tuesday’s high will likely be a magnet today.
- The Globex market is trying to form a wedge bottom on the open and that may increase the risk of a rally lasting a couple of legs.
- As I often say, most traders should assume that today will have a trading range open and go sideways on the open. This means that most traders should wait 6-12 bars before placing a trade.
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 is getting a second leg down after Tuesday’s bad High 1 buy signal bar.
- The market will probably reach the February 22nd high as it is a location where limit order bears are likely sold and scaled in higher.
- The bears are hopeful that today is the start of a successful reversal of the February rally.
- While this is possible, it is more likely any selloff will lead to sideways trading and not a test down to the February low.
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.
