Yesterday, the S&P E-Mini market showed a bull reversal bar on the daily chart, hinting at a potential trend resumption for the bulls. However, the context of a 6-day tight trading range poses a challenge, increasing the risk of failed breakouts and sideways movement.
With the market in breakout mode, the big question is whether the next move will be up or down. Despite the strong reversal from the August 5th low, the bulls face the obstacle of high levels in the overall trading range on the daily chart, leading to unfavorable risk/reward dynamics.
What to Expect Today in the S&P E-Mini Market
- The U.S. Session opened with a small gap that closed during the first bar.
- The Globex market saw a rally in a tight bull channel on the 15-minute chart overnight.
- Despite breaking above yesterday’s high, the market encountered resistance due to the recent trading range pattern.
- As of 9:20 AM EST, the market is hovering near the middle of the four-day trading range, signaling a neutral stance ahead of the U.S. Market open.
- Bears initiated a strong selloff, with odds favoring a second leg down, possibly forming a trading range near the morning low.
- Traders should anticipate a day filled with trading range price action.
- There is an 80% chance of a trading range open, with only a 20% chance of a clear trend direction from the open.
Yesterday’s E-Mini Setups and Trading Tips
For those looking to enter the market, here are some stop-entry setups from yesterday indicating buy and sell opportunities. It’s essential to have an “Always In” perspective, but keep in mind that most swing setups may not lead to profitable trades.
If the risk seems too high for your account, consider waiting for lower-risk trades or exploring alternative markets like the Micro Emini.
Stay informed, stay cautious, and make strategic decisions to navigate the S&P E-Mini market effectively!