Trading Update: Tuesday February 28, 2023
Emini pre-open market analysis
Emini daily chart
- The Emini gapped up after last Friday’s (February 24th) bull signal bar and failed breakout of the January 25th bottom of the bull channel.
- Yesterday’s gap-up was good for the bulls; however, bulls need strong breakout as most of the bulls scalped out, and the bears could make a profit selling above last Friday’s high.
- The bears want yesterday to be a pullback from last week’s selloff and for the market to test the January 19th signal bar low.
- Since the daily chart is in a likely trading range, traders should expect a test of the February 10th low over the next couple of weeks. Limit order traders make money in trading ranges, and they got trapped buying the February 10th low during February 17th or 18th.
- The bulls that scale in lower will likely make a profit and be able to exit back at the February 10th low, which means the market will probably retest this low soon.
- Overall, traders should expect more sideways trading and the market to oscillate around 4,000. While yesterday is a bear signal bar closing on its low, there are probably more buyers below.
Emini 5-minute chart and what to expect today
- Emini is down 4 points in the overnight Globex session.
- The Globex market has been in a bull rally since the early morning hours.
- The bulls want an early low of the day during the U.S. session and a bull trend day to undo the damage caused by yesterday’s bear bar.
- As always, traders should expect a trading range open and for the market to go sideways for the first 6-12 bar.
- Most traders should look for a swing trade that often forms within the first two hours of the day. The swing often comes after a double top/bottom or a wedge top/bottom, which means traders can look for one of these patterns on the open and wait for a stop entry.
- Overall, traders should expect a trading range until there is a clear breakout with follow-through.
Emini intraday market update
- No Intraday update today.
Yesterday’s Emini setups
Al created the SP500 Emini charts.
Here are several reasonable stop entry setups from yesterday. 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 much more detailed explanation of the swing trades for each day (see Online Course/BTC Daily Setups).
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 beginning to form a bottom near the January 6th low.
- While the bears can argue that the market is in a small pullback bear trend, it is low in a trading range. This means that the risk of a reversal up is real.
- It is reasonable for bears to consider exiting on a reversal up, such as yesterday’s bull reversal bar (Green Box).
- Overall, traders will pay close attention to today’s reversal to see its strength. If the bulls can get a strong reversal up, more traders will buy, betting on a second leg up.
Summary of today’s S&P Emini futures price action and what to expect tomorrow
Al created the SP500 Emini charts.
End of day review
- Live stream video trial replacement of end of day review coming soon.
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.
