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Emini Bears Disappointed with 2nd Leg

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Trading Update: Tuesday December 31, 2024

Emini end of day video review

Emini EOD Review Joseph Imbornone

Follow Joseph’s YouTube channel for more Al Brooks price action analysis.

S&P Emini market analysis

Emini daily chart

  • The Emini formed a doji bar yesterday after testing the December 19th Low 1 sell signal bar.
  • The December 19th low 1 was likely to find buyers due to disappointed bears returning partial profits at the Low 1. This is leading to the 2nd leg down for the bears being disappointing.
  • The bulls are hopeful that the market is forming a double bottom with the December 20th Low.
  • Yesterday’s buy signal bar is not ideal for the bulls. This increases the odds of sellers above its high.
  • The bears tried to get a 2nd leg down, but the selloff since last Friday is week. This increases the odds of the market getting a bounce.

Emini 5-minute chart and what to expect today

  • The Emini gapped up on the open and has formed a tight trading range for the first 12 bars of the day. This increases the odds that there will be a lot of trading range price action today.
  • The market is in breakout mode and deciding if there will be a breakout up or down.
  • Most traders are better off waiting for a breakout with follow-through, breaking out of the opening range before placing a trade.
  • The bulls want a 2nd leg up from yesterday’s rally. They are hoping that today’s open is a large pullback that will lead to a 2nd leg up and test of yesterday’s high.
  • At the moment, the market is neutral and in breakout mode.
  • Because today is the year’s final day, there is an increased risk of a surprise happening late in the day as institutions begin to position themselves going into the new year.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart Wedge Bottom and Then Small PB Bull Trend

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 Double Top and Then Bear Channel

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.

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