Trading Update: Friday January 31, 2025
Emini end of day video review
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S&P Emini market analysis
Emini daily chart
- The Emini formed a bull bar closing above Wednesday’s High 1 Buy Signal Bar. Because Wednesday is an inside bar, there is an increased risk of a retest of its high over the next day or two.
- The bulls want a breakout above the four-day tight trading range and a measured move above the December all-time high. The bears need to stop the bulls from getting a strong breakout bar closing on its high today. This would increase the odds of sellers above and a reversal back into the four-day tight trading range.
- More likely, the bulls will become disappointed at this price level, and there will be sellers not far above.
- Even if we go above the December high, the market will probably find sellers unless the bulls are able to form a strong bull breakout.
- Overall, traders should expect the bulls to become disappointed at this current price level. This means the odds are against the bulls getting strong bull bars with follow-through.
Emini 5-minute chart and what to expect today
- The Emini gapped up and formed a bull trend from the open for the first 12 bars of the day. While the channel up is tight, it has a lot of overlap. This increases the risk that the trend from the open will evolve into a trading range before the end of the day.
- The bulls are hopeful that the trend from the open will last all day.
- The bears want a reversal down. However, as of bar 12, the channel up is tight. This means the bears need to add to the selling pressure to get a reversal down.
- At a minimum, the bears must halt the buying pressure and make the market go sideways. Without more selling pressure, the best the bears can hope for is a trading range.
- The risk the bulls face is that the rally up to bar 13 is a parabolic wedge top that leads to an endless pullback.
- If this is going to happen there will be plenty of time to sell. Bears need to first demonstrate control by getting a series of bear trend bars closing below their midpoints, at a minimum.
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.
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.
How come fridays B43 is not considered a buy?