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Emini Bears Likely to Take Partial Profits

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Trading Update: Friday December 20, 2024

S&P Emini market analysis

Emini daily chart

  • The Emini formed a Low 1 short yesterday following Wednesday’s strong downside breakout. While the selling has been strong, the bears are likely to take partial profits soon due to the risk getting big.
  • The Bear broke below yesterday’s Low 1 short during the overnight hours and found buyers below it.
  • The Bears have done a great job with the selling over the past couple of days. However, the risk is getting big for the bears, increasing the odds of a pullback soon.
  • The bears are hopeful that the daily chart has successfully converted into a bear trend. More likely, the daily chart is now in a trading range.
  • Wednesday’s bear breakout is strong enough that the odds favor a 2nd leg down, even if there is a deep pullback first.
  • Today, we will probably close below the daily opening and attempt to form a bull reversal bar.
  • Overall, the selling is strong enough for a 2nd leg down, even if there is a deep pullback first.

Emini 5-minute chart and what to expect today

  • The Emini formed a double bottom with bar 5 and an upside breakout above the neckline on bar 9.
  • Bar 5 was a reasonable buy for a swing trade, betting on an early day’s low. The Bulls ended up getting a strong upside breakout, making the market always stay in long on bar 11.
  • This is all about the higher time frame bears getting exhausted and taking partial profits.
  • The breakout around bar 11 is strong enough that traders should be either long or flat and not consider selling.
  • The bears are hopeful that today will be either a trading range. They first need to halt the buying pressure and make the market go sideways. Bulls will likely buy the first reversal down.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart Double Bottom Then Broad Bear Channel

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

SP500 Emini 5-Min Chart Bull Trend from Open Then a Trading Range

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.

EURUSD Forex market analysis

EURUSD Forex daily chart

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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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