Emini Strong Reversal up on Daily

Trading Update: Friday January 17, 2025

S&P Emini market analysis

Emini daily chart

• The daily chart formed a bear bar yesterday after Wednesday’s test of the moving average. The Bears are hopeful that the recent reversal up to the moving average is another lower high in the bear channel that began after the December 18^th downside breakout.
• The bulls have a wedge bottom with the December 18^th, January 2^nd, and the January 13^th lows.
•  The reversal up from the January 13^th low is strong enough that the odds favor a 2^nd leg up after any pullback.

Emini 5-minute chart and what to expect today

• The Emini formed a large gap up during the early morning hours. The bulls are hopeful that today will form a strong close above yesterday’s high and the daily moving average.
• The bears want the market to test back down to yesterday’s high and allow the scale in bears selling above yesterday’s high to make money, which will probably happen.
• The bulls are hopeful that the reversal up from bar 3 will result in an opening reversal that will lead to a bull trend day. Today, a trading range will likely be formed as an expanding triangle.
• The risk is getting big for the bulls, increasing the odds of profit-taking on the open and the market forming a trading range.
• The bears want a double top and a break below the bar 3 neckline. Next, they want the market to fall for a measured move down and test yesterday’s high.

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.

Emini end of day video review

Periodic end of day review videos will be moved to top of page when done.

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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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