Emini SPX: Small Pullback Bull Pattern Close to 2956


Pre-Open Market Analysis

The rallied in a Small Pullback Bull Trend on Friday. This is within a month-long Small Pullback Bull Trend on the daily chart. While there might be profit-taking around the September all-time high, the odds are that the best the bears will get is a couple weeks of a pullback to around the March 21 high. That was the breakout point of the rally of the past 3 weeks.

Everyone is aware of the all-time high 2956.00 magnet just above. Even if there is profit-taking, the bulls will probably get closer before they take profits. In addition, a strong rally like this often ends with a blow-off top. The odds continue to favor higher prices.

It is important to note that the Emini might start to go sideways ahead of Wednesday’s FOMC announcement. That could lead to either a strong break above or reversal down. But, because the bull trend is so strong, the bulls will buy any 1 – 3 week selloff.

Overnight Emini Globex Trading

The Emini is unchanged in the Globex session. After a big bull day on Friday, there is an increased chance of exhaustion. That typically results in a small day and a close around the open. But the all-time high magnet is only about 13 points above. The Emini could quickly get there any day this week.

Tomorrow is the last day of the month. Most bars on all time frames have at least a small conspicuous tail on the top and bottom. Currently, the April bar has no visible tail on the monthly chart. There is therefore an increased chance of a 10 – 20 point pullback by tomorrow’s close.

Yesterday’s Setups

Emini S&P 500

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. I rarely also show limit order entries and entries on the close of bars. Buyers of the Brooks Trading Course have access to a much more detailed explanation of the swing trades for each day.

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