Trading Update: Tuesday December 10, 2024
S&P Emini market analysis
Emini daily chart
- The Emini formed a downside breakout bar yesterday, as the bulls began to take partial profits and the bears began to sell.
- This is a warning that the momentum of the bulls is beginning to weaken.
- The bears have done a good job getting a bear reversal bar. However, one bar alone is not enough. Next, the bears need to create a series of bear bars closing below their midpoints.
- The daily chart is in a bull channel, and bears are making money by selling above bars. This increases the odds that the market will reach the November 11th high and allow the scale in bears to make money.
- The bears are hopeful that today will form a strong follow-through bar after yesterday’s bear reversal bar.
- More likely, today will disappoint the bears and not become a strong bear trend bar on the daily chart.
Emini 5-minute chart and what to expect today
- The Emini formed a large bear breakout bar on bar 1 near the day’s low. This increases the odds that today, there will be a lot of trading range price action on the open.
- The bulls formed a reversal up with bar 7. They are hopeful that the bar 1 bear breakout will lead to a measured move up of the bar and a test of Y’s Bar 53 high.
- The bulls are hopeful that the rally up to bar 13 is forming a small pullback bull trend. At a minimum, they need to form negative gaps to convince traders that a small pullback bull trend is underway.
- A trading range open is most likely. Traders should expect the bull rally up to bar 13 to lead to disappointment and reversal down.
- The market found buyers below yesterday’s low, which was expected. The bears are hopeful that the reversal up from yesterday’s low will fail and lead to a strong breakout below yesterday’s low.
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.
Emini end of day video review
Periodic end of day review videos will be moved to top of page when done.
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.
