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Emini Profit Taking above November High

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Trading Update: Monday December 2, 2024

Emini end of day video review

Emini EOD Review Joseph Imbornone

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S&P Emini market analysis

Emini daily chart

  • The Emini rallied above the November 11th high last Friday and formed a bull bar closing near its high. There will probably be profit-taking above the November 11th high.
  • The market will probably find sellers above yesterday’s high, and the Emini will probably test back down to the 6,000-round number in the next day or two.
  • The channel up over the past eight trading days is tight, which increases the odds that any reversal down will be minor. However, the eight-day rally has only gone three points above the November 11th high, which makes most of November a trading range.
  • The Bears want the market to form a double top with the November 11th high and break below the November 15th neckline.
  • Next, the Bears want a measuring move down of the November range and test to the 5,700 round number.
  •  The Bears need a strong selloff down to the November 15th low if they will convince traders that they will get a successful measured move down.
  • Channels typically evolve into trading ranges. This means that the market will probably test down to the November 15th low. However, the bears will probably be disappointed with the selloff, and the market will likely go sideways.
  • Bears have been making money selling above new highs in the bull channel. This means that both Bulls are probably taking profits and Bears are establishing short positions above the November 11th high.

Emini 5-minute chart and what to expect today

  • Note: I am traveling and writing this at 2:45 AM EST. Therefore, the opening price action will likely look very different on the open of the U.S. Session.
  • The Bears formed a strong rally last Friday, and the market sold off in a tight bear channel during the overnight Globex 60-minute chart.
  • While the selloff on the Globex chart is good for the bears, it is likely a bear leg in what will become a trading range. This means the market may have to rally back to near last Friday’s high.
  • The bears are hopeful that the overnight Globex selloff is strong enough for a 2nd leg down.
  • The selloff down to 3 AM EST will likely get a bounce up before the Bears can get a possible 2nd leg down. The bulls will try to trap the bears and get a reversal back to last Friday’s High.
  • There is an 80% chance of a trading range open and only a 20% chance of a trend from the open up or down.
  • This means that traders should anticipate the market going sideways on the open of the U.S. Session. Traders should consider not trading for the first 6-12 bars unless they are quick to make decisions. This is because the market will often reverse directions on the open.
  • Trading ranges always form a double top/bottom or a wedge top/bottom. Since there is an 80% chance of a trading range open, traders can wait for one of the above-mentioned patterns to form before placing a trade.
  • Most days, form an opening swing that lasts often for at least two legs and usually two hours. This often provides excellent risk/reward. Traders should try to catch the opening swing for this reason.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart Double Top, Bear Channel, Minor Reversal into TR

Richard created the SP500 Emini chart – Al on Thanksgiving leave.

Here are reasonable stop entry setups from last Wednesday before Thanksgiving break. I show each buy entry bar with a green arrow and each sell entry bar with a red arrow. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a near 4-year library of more detailed explanations of swing trade setups (see Online Course/BTC Daily Setups). Encyclopedia members get current daily charts added to Encyclopedia.

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.

Summary of today’s S&P Emini price action

SP500 Emini 5-Min Chart Bull Trending Trading Range Day and Bull Channel

Al created the SP500 Emini chart.

EURUSD Forex market analysis

EURUSD Forex daily chart

  • The EURUSD reversed after the climactic selloff ending on November 22nd. However, the channel down was tight. This increases the odds of any reversal being minor and not leading to a major reversal.
  • Today, the market is attempting to get a reversal back down after a test of the moving average.
  • A trading range is most likely. This means that there are probably buyers near the low of November 22nd.
  • The bears will try to drive the market down to the November 22nd low, and the bulls want the market to form a higher low.
  • The Bulls need to form more buying pressure if they are going to get a reversal up. This means they need to start collecting more bull bars above the moving average at a minimum.
  • Overall, the EURUSD will likely continue to go sideways over the next several days as the Bulls attempt to develop more buying pressure.

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.

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