E-mini signals can be grouped into two basic groups, news and market data. Signals are used by traders to predict future market direction in order to capitalize on the expected move. Since E-minis mimic the activities of their respective indexes, e-mini signals do not focus on the action of a contract but the action of an index. The S&P 500 and 400, the NASDAQ 100 and Russell 2000 are the major averages that have E-mini futures available for trade.

The stock market has daily price changes that can often be influenced by financial news. For example, a high profile S&P 500 company could miss earnings estimates and warn of slower future growth. This type of headline will often cause the market to trade lower for at least one session, often more if the market is in bad shape. A trader can then sell an E-mini S&P 500 contract and buy it back later at an expected lower price.

Technical E-Mini Signals

Technical analysis is the study of market generated information. The market tends to move in trends and often moves in similar cycles found in the past. Technical analysis identifies key market trends and provides information for a trader to base trades. Trend lines, stochastic, and moving averages are all technical tools that can give traders signals.

The best signal for a trader to learn to use is the daily price and volume action of the selected index or contract. Institutions are the driving force behind any market trend and they leave their tracks in the form of volume. A person familiar with understanding price and volume can see when big institutions are selling positions or buying stock. Since these players often have huge equity positions they can drag the market down or lift it higher for days, weeks and even months at a time. Recognizing important price and volume changes can give a trader a clear signal to make a trade.