Trading Update: Monday December 9, 2024
Emini end of day video review
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S&P Emini market analysis
Emini daily chart
- The Emini is continuing to form a tight bull channel on the Daily chart. However, the risk is getting big for the bulls. This increases the odds that bulls will quickly take partial profits and look to buy a pullback.
- The bulls are hopeful that they will make a measured move up based on the bull breakout of the trading range (November 19th low and November 11th high).
- The bears want the reversal down; however, as I have mentioned in a prior blog post, they need to halt the buying pressure.
- At a minimum, the bears must make the market go sideways. Ideally, the bears need to create bear bars closing on their lows.
- If the bears can create a bear reversal bar closing near its low, that might be enough for bulls to begin taking partial profits.
Emini 5-minute chart and what to expect today
- The Emini formed a small gap, and the first seven bars overlapped a lot.
- This increases the odds of a trading range opening and the market going sideways for the first few hours.
- There is an 80% chance of a trading range open and only a 20% chance of a trend from the open.
- The bears are hopeful that there is a trend from the open bear trend with bar 1 today. However, the market has been near the bottom of the trading range since last Friday and has several overlapping bars. This increases the odds that any selloff we get will form a bear leg in what will lead to a trading range, not a bear trend.
Friday’s Emini setups
Al created the SP500 Emini charts.
Here are reasonable stop entry setups from Friday. 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
Al created the SP500 Emini charts.
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.
Glad you are back doing these! I read these EVERY morning and really miss them when you aren’t able to post them.