Trading Update: Tuesday November 15, 2022
Emini pre-open market analysis
Emini daily chart
- Yesterday formed a bear bar closing near its low. However, the body was small compared to the tail above the bar. This is more likely a pullback bar than the start of a successful reversal down.
- The market may likely pullback soon to go sideways for a few days to relieve the buying pressure.
- Currently, the odds still favor higher prices and a test of the September 12 low.
- The bulls want to create a gap between the November 1 high and yesterday’s low. Next, they want a measured move up from the November 3 low (or October 21) to the November 1 high, projecting up to the September 12 low.
- The bears see this rally as a potential second-leg trap, with the first leg being the rally up to November 1.
- The problem the bears face now is the lack of selling pressure. This means the bears will need to develop more signs of strength, one way to do that would be to make the market go sideways and form a micro double top.
- The rally over the past three trading days is climactic, increasing the odds that the market will have to go sideways before it can go much higher.
- Traders also need to remember that 4,000 is a very important round number, and the market may have trouble getting far away from it, increasing the odds of going sideways.
Emini 5-minute chart and what to expect today
- Emini is up 55 points in the overnight Globex session.
- At the moment, the market will have a large gap up.
- This increases the odds of an attempt at a rally forming in the first 1-2 hours of the day.
- The odds of the day being a bull trend or a trading range day increase. Less likely, the day will be a bear trend from the open day.
- The odds are against a bear trend from the open; the market could quickly form a trading range open and then form a bear trend day.
- As always, most traders should avoid trading in the first 6-12 bars of the day. The reason for this is that most of the time, the first hour has a lot of failed breakout attempts, making it a good limit order market which is not ideal for most traders.
- Traders can wait for a credible stop entry forming after a double top/bottom or a wedge top/bottom.
- Traders can also wait for strong consecutive trend bars before looking to trade in the direction of the trend, assuming the context makes sense.
- Lastly, the bulls will likely be disappointed soon. This means traders should be cautious and pay attention to the open of the day, as it will probably be a magnet all day.
Yesterday’s Emini setups
Al created the SP500 Emini charts.
EURUSD Forex market trading strategies
EURUSD Forex daily chart
- The bulls got a strong two-bar breakout last Thursday and Friday.
- The market formed a High 1 buy above yesterday’s high and is breaking out to the upside.
- Although this rally is strong, yesterday’s buy signal bar is a bear doji bar, increasing the odds that the upside will be limited before a deeper pullback.
- The bulls hope the market will reach the measured mover up of last Thursday and Friday (purple line). However, the market will probably have a deeper pullback first.
- The bears need to develop more selling pressure before they have a credible short. Currently, the market is Always In Long, and the odds favor higher prices.
- Traders will pay close attention to today. Will the bulls who bought above yesterday’s high 1 buy signal scalp out painting a big tail above, or will the bulls continue to buy into the close, causing today to close on its high.
- So far, today is a good far for the bulls. Even if the market pulls back for a couple of days, the odds will still favor a measured move up and test of 1.0700 (purple line)
Summary of today’s S&P Emini futures price action and what to expect tomorrow
Al created the SP500 Emini charts.
End of day video review
See the weekly update for a discussion of the price action on the weekly chart and for what to expect going into next week.
Traders can see the end of the day bar-by-bar price action report by signing up for free at BrooksPriceAction.com. Al talks about the detailed S&P Emini futures price action real-time throughout the day in the BrooksPriceAction.com on 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.
Video review added…
WOW ….Truly amazing and so right. I guess I get this kind of mastery one day.
The secret really is to study and look at a lot of charts. The best piece is time. The longer you do anything the better you will become. Keep at it and you will learn more and more everyday.
Brad hey, thanks for the report. You have mentioned Sept 12th low because of the gap or you have meant to refer to September 12 high?
The September 12th low is a gap, and the marked never tested that price level. Since the daily chart is in a Trading Range, the market should get there as gaps tend to close in trading ranges. The market still may have to pullback before there is a test of the September 12 low.