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Emini Sellers above Yesterday’s High 1

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Trading Update: Tuesday October 17, 2023

S&P Emini pre-open market analysis

Emini daily chart

  • The Emini rallied above last Friday, forming a High 1 buy on the daily chart.
  • The Bulls hope the High 1 buy setup will lead to a second leg up following last week’s upside breakout.
  • The problem the bulls have is most High 1 buy setups in trading ranges lead to sellers above and a deeper pullback, which is what the odds favor today.
  • The bears are hopeful they can reverse the recent upside breakout. However, the best the bears can do is create a trading range.
  • Overall, the odds favor a pullback and second leg up.

Emini 5-minute chart and what to expect today

  • Emini is down 26 points in the overnight Globex session.
  • The Emini broke out to the downside during the early morning hours.
  • There is an 80% chance of a trading range opening and only 20% of a trading range open.
  • Traders should consider waiting for 6-12 bars before placing a trade unless they are quick to make decisions since most reversals fail.
  • Most traders should wait for the open swing to develop, which often begins after the formation of a double top/bottom or a wedge top/bottom.
  • Traders should be open to a possible early low of the day due to bears who sold yesterday’s high 1 buy setup taking profits. However, if today is going to form an opening reversal, there will be plenty of time to react.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart Bull Trend From the Open and Then Trading Range

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

EURUSD Daily: Sellers Above Yesterday’s High
  • The EURUSD formed a bull bar, closing on its high yesterday. However, it is following two consecutive bear bars, with one closing on its low.
  • The bears will sell above yesterday’s high and try to get a second leg down and a test of the October low.
  • The bulls saw yesterday as the buy signal bar for a higher low major trend reversal. The problem that the bulls have is the pattern for the major trend reversal does not have enough bars.
  • It would have been better if the rally to the October high had lasted more bars and had more closes above the moving average.
  • Also, the retest (October 13th) of the bottom of the bear channel is only two bars, which is not enough. This will increase the risk of any reversal leading to a trading range, not a bull trend.

Summary of today’s S&P Emini price action

SP500 Emini 5-Min Chart Lower Low DB Then Small Pullback Bull Trend

Al created the SP500 Emini charts.

End of day video review

Today’s End Of Day review will be presented in the Trading Room and only available to the trading room subscribers.

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.

  • Dear BTC Team,

    It’s nice that Al is making charts with boxes and arrows so that we can experiment with the look and feel of it.

    Today, while reading the charts with arrows, I realized why I prefer boxes.

    Arrows say enter on this bar while boxes say enter here at this specific price.

    I hope this helps.

    Regards,
    Mario

    • Hi Mario,

      The boxes did not accurately show entry price, as depending on day’s range (scale of chart) the center of box could be 1 tick above/below prior bar high/low or a lot more.

      I do not always use Al’s rule to place stops 1 tick above/below signal bar, especially if there is a tail above/below close, so will often enter before the high/low of prior bar.

      So using arrows keeps the chart uncluttered to accommodate different trading styles. Right? 🙂

      • fair enough, signifying the entry bar works good enough for me also, makes the chart better readable too

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