Trading Update: Wednesday January 17, 2024
S&P Emini pre-open market analysis
Emini daily chart
- The Emini continues to go sideways following the strong rally from the November low.
- The bulls see the month-long trading range as a bull flag that will likely continue to the upside. Next, the bulls want an upside breakout and test of the March 2022 high.
- The bears are hopeful that the upside breakout will lead to a final flag and a reversal back down to the midpoint of the month-long tight trading range.
- Overall, traders should assume that the probability slightly favors the bulls, but not by much.
Emini 5-minute chart and what to expect today
- Emini is down 30 points in the overnight Globex session.
- The Globex market is testing below yesterday’s low and will likely gap down on the open.
- The bears are hopeful that today is a bear breakout and that the test will begin down to the January low, which is the neckline of the double top on the daily chart.
- Traders should assume that today will have a lot of trading range price action on the open. This means that most traders should wait for 6-12 bars before placing a trade.
- Most traders should wait for the opening swing that often begins before the end of the second hour.
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.
EURUSD Forex market trading strategies
EURUSD Forex daily chart
- The EURUSD formed a strong downside breakout yesterday. This is likely the start of the second leg down, following the early January selloff.
- The bears need follow-through selling to convince traders that the odds favor lower prices. Without it, traders will question how far down the breakout will go.
- The bulls want today to form a strong reversal up, creating a failed breakout.
- At the moment, yesterday was enough of a surprise to get at least a small second leg down. However, traders will pay close attention to the follow-through selling today.
Summary of today’s S&P Emini price action
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.
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.
