Trading Update: Tuesday January 30, 2024
S&P Emini pre-open market analysis
Emini daily chart
- The Emini rallied, forming a bull bar and closing on its high.
- The bears are hopeful that yesterday’s upside breakout will lead to a final flag (2 bars ago) and a reversal back down to the moving average.
- The risk is getting big for the bulls, increasing the odds of a pullback soon.
- While the bears will probably get a reversal down soon, any reversal will likely be minor and lead to a bull flag or a trading range.
- Overall, traders should expect the daily chart to begin to go sideways soon.
Emini 5-minute chart and what to expect today
- Emini is down 6 points in the overnight Globex session.
- The overnight Globex market went sideways to down for several hours.
- Traders should expect a lot of trading range price action going into the U.S. Session.
- The bulls want follow-through buying after yesterday’s upside breakout. Today will likely be a trading range day and disappoint the bulls.
- As always, traders should expect the market to have a lot of sideways trading on the open.
- Most traders should try and catch the opening swing that often begins before the end of the second hour, after the formation of a double top/bottom or a wedge top/bottom.
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.
EURUSD Forex market trading strategies
EURUSD Forex daily chart
- The bears failed to get a bear bar closing on its low yesterday, below the prior bar low.
- The bulls are making money below bars in the bear channel, which increases the odds of the channel evolving into a trading range soon.
- The bears are hopeful the channel is tight enough and holding below the moving average that it will lead to a downside breakout. Next, the bears would want a test of the December low.
- The bulls need to begin to get close above the moving average to increase the odds of the market evolving into a trading range. Next, the bulls would want an upside breakout and a test of the December high.
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.
