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Emini Sideways and Breakout Mode

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Trading Update: Monday July 24, 2023

S&P Emini pre-open market analysis

Emini daily chart

  • The Emini closed as an inside bar last Friday. Inside bars are breakout mode patters, and this will increase the odds of a breakout above or below last Friday’s bar.
  • The bulls want a second leg up following the strong rally up to the July 19th high, and they will likely leg a second leg.
  • However, the bears now have a three-bar bear microchannel, increasing the odds of a second leg down. This means that there may be more sellers above last Friday’s high for a brief second leg down.
  • There are probably buyers below any bar which will limit the downside.
  • The bears are hopeful that last week’s bulls breakout is exhaustion and will lead to a pullback to the June high. while this is possible, the bears will need to develop more selling pressure before they can get a reversal of the recent bull rally.

Emini 5-minute chart and what to expect today

  • Emini is up 7 points in the overnight Globex session.
  • The Globex market has been in a tight trading range on the 60-minute chart.
  • The Bulls recently got a small upside breakout that will probably get a second leg up.
  • Due to the market having an inside bar on the daily chart last Friday, the open will probably have much sideways trading. This means most traders should consider not trading the first 6-12 bars and wait. Most  
  • Traders can also consider waiting for the opening swing trade to develop and enter on a stop entry trying to catch it.
  • Most of the time, a double top/bottom or a wedge top/bottom forms before the opening swing trade begins.
  • The most important thing to remember is to be open to anything and patient. There are 81 bars to the day which means there is plenty of time to place a trade.

Friday’s Emini setups

SP500 Emini 5-Min Chart Trading Range Day with Close near Open

Al created the SP500 Emini charts.

Here are several reasonable stop entry setups from Friday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. 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 Bears Testing May High
  • The EURUSD sold off and reached the May high, a sign that the daily chart is in a trading range and not a bull trend.
  • The bears will probably get a second leg down after getting five consecutive bear bars on the daily chart. However, the market will probably bounce first since it is close to the May high. The bounce will likely be brief due to the bear microchannel.
  • The bears want to get down to the July 12th low (bull breakout), and the bulls want to prevent this.
  • Overall, traders should expect partial profit-taking by the bears and a bounce over the next couple of days. However, as mentioned above, any bounce will likely be minor, and the Bears will get a second leg down.

Summary of today’s S&P Emini price action

SP500 Emini 5-Min Chart Bear Trap Then Trading Range Day

Al created the SP500 Emini charts.

End of day video review

Here is YouTube link if video popup blocked:

Emini End of Day Review – Monday July 24, 2023 – Brad Wolff

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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