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Emini Near Daily Moving Average

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Trading Update: Wednesday December 18, 2024

Emini end of day video review

Emini EOD Review Joseph Imbornone

Follow Joseph’s YouTube channel for more Al Brooks price action analysis.

S&P Emini market analysis

Emini daily chart

  • The Emini is near the daily moving average and will likely have to reach it in the next day or two. This is because the moving average is a reflection of the fair price, which is often tested when the market is transitioning into a trading range.
  • The daily chart is near the middle of a tight trading range that has gone on for at least two weeks. This puts the market in breakout mode, making the probability close to 50% for both the bulls and bears.
  • Today is an FOMC day, which increases the risk that the report will be the catalyst for the breakout of the tight trading range on the daily chart.
  • Overall, the daily chart is neutral going into the FOMC report. Traders should wait for a clear breakout of the tight trading range and assess the probability of success or failure.

Emini 5-minute chart and what to expect today

  • Today, a reversal was formed at bars 4-5 due to yesterday’s strong rally at bar 77.
  • Traders should expect a 2nd leg up after bar 5. The bulls need to break above the bar 78 high, or the bears will see it as a possible double top.
  • As mentioned above, today is a FOMC day. Traders should be flat at least 30 minutes going into the report. Most traders should stay flat for at least 10 minutes after the report.
  • The FOMC report typically increases the volatility, which means bigger bars. Traders should consider trading 20% of their average position size to ensure they are trading small.
  • Because there is an increased risk of volatility and reversal during the FOMC, traders should consider treating today as a half day and not trading the report.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart LL DB Then Wedge Top

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

SP500 Emini 5-Min Chart Buy Climax Then Reversal Down after FOMC

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.

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