As the world’s top investment manager and financial market journalist, I have the inside scoop on what’s happening with the S&P Emini market. Here’s what you need to know:
- The Bulls are on the move with a second leg up following a bear bar last Thursday. Will today form an inside bar closing on its low for a second entry short?
- Last Wednesday saw a climactic exhaustive breakout in a bull trend, leading to profit-taking and bad follow-through last Thursday.
- Exhaustion bars often see a brief second leg up, like last Friday. But with a tail above the bar and a close below the midpoint, sellers may dominate any rally.
- Today, the bears are looking for a reversal below yesterday’s low to create an implied second leg down.
- The rally-up in July is looking climactic and late in a bull trend, increasing the odds of a reversal down to test the July low.
Analysis and Breakdown:
Overall, the market is likely to continue going sideways and return to the moving average. With the bears needing to add selling pressure to maintain the current trend, it’s essential to keep a close eye on the market’s movements.
What to Expect Today:
- Emini is up 20 points in the overnight Globex session, drifting sideways to up in a tight bull channel since Sunday.
- The bulls may be hopeful for a reversal of last Friday’s selloff, but the past 8 bars on the 15-minute chart suggest sideways trading on the open.
Friday’s Emini Setups:
For those looking to make profitable trades, here are some stop-entry setups from Friday to consider. Remember, most swing setups do not lead to trades, so it’s crucial to manage risk and be patient for the right opportunities.
For those seeking lower risk trades, consider trading the Micro Emini or waiting for setups with less risk. Stay informed and stay ahead of the market trends for maximum profit potential!