Emini Disappointed Bulls at the December High

Trading Update: Wednesday December 11, 2024

Emini end of day video review

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S&P Emini market analysis

Emini daily chart

• The Emini formed consecutive bear bars over the past two trading days. This is good for the bears and increases the odds of disappointed bulls at the December High.
• While this is good for the bears, the context is a tight bull channel inside a larger bull channel over the past several trading days.
• The odds favor a test of the December high. However, the bills will likely be disappointed and use the bounce to take partial profits. This increases the risk of sellers above the December high and the bears getting a 2^nd leg down and testing the moving average.
• The bulls were able to get a gap on the open of today’s U.S. Session. Next, they want today to form a strong bull trend bar on the daily. This would increase the odds of a 2^nd leg up.

Emini 5-minute chart and what to expect today

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Yesterday’s Emini setups

Al created the SP500 Emini charts.

Here are reasonable stop entry setups from yesterday. 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.

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EURUSD Forex market analysis

EURUSD Forex daily chart

• The EURUSD formed a 2^nd entry short on December 6^th and found follow-through selling over the past four trading days.
• The bulls hope the current selloff will lead to a higher low.
• The selloff that ended in November was climactic; the odds favor buyers at a new low.
• Because the odds favor buyers at a new low, the market may find buyers front-running the buy, anticipating that the market will not reach the November low during the current sell-off.
• Overall, the market will probably find buyers not far below, and the bears will be disappointed with the current selloff.  

See the weekly update for a discussion of the price action on the weekly chart and for what to expect going into next week.

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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.

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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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