Tuesday, May 30, 2023

E-mini Lower Probability New High After July Bull Streaks


Strong bull trend and bull streaks.

Friday made another new all-time high.

Magnets above are measured move target at 4,404 and top of bull channel around 4,500.

Streaks on daily and 60-minute charts ended last week. They increase the chance of exhausted bulls and sideways trading over next week or two. This reduces chance of big move up this week.

If reversal down today or tomorrow, then expanding triangle top that began with July 2 high. Easier to see on 60-minute chart.

Even if reverses down, odds still favor minor reversal, like all of the other reversals over the past year.

E-mini 5-minute chart and what to expect today

E-mini is down 3 points in the overnight Globex session.

Friday was a buy climax day so 75% chance of at least a couple hours of sideways to down trading today that starts by the end of the second hour.

Magnet below is bottom of most recent buy climax, which is the tight bull channel that began midday Friday at 4351.25.

Magnet above is Friday’s all-time high and then the 4404 measured move target.

Friday’s E-mini setups

E-mini 5 Min

Here are several reasonable stop entry setups from Friday. 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 E-mini.

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