Trading Update: Tuesday January 14, 2025
Emini end of day video review
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S&P Emini market analysis
Emini daily chart
- The Emini formed a strong bull reversal bar yesterday after the bear failed to get follow-through selling following last Friday’s downside breakout.
- The bulls are hopeful that today will form a strong entry bar, increasing the odds of the bulls getting a 2nd leg up due to trapped bears.
- The bears want to prevent the bulls from getting a strong bull entry bar. At a minimum, the bears are hopeful they can create a weak bull entry bar, increasing the odds that the daily chart will go sideways for a couple of bars.
- The November 4th low is still an important magnet for the market to test. The bears are hopeful that they will be able to reach it and that yesterday’s reversal up is simply a minor reversal.
- Today will probably not be a strong bull entry bar on the daily chart. This means that today will probably form a disappointment bar for the Bulls.
Emini 5-minute chart and what to expect today
- The market gapped up on the open, reversed down on bar 3, and reached the moving average on bar 6. The bulls are hopeful that the selloff down to bar 6 is a sell vacuum test of support and that the market will rally above the bar 3 high.
- Today, the bulls want to form another strong bull bar on the daily chart. This means that traders should be aware of the possibility of another bull trend day.
- The bears did a good job with the sell-off down to bar 6, but that alone is not enough for the bears to take control. At a minimum, the bears need to form some version of a double-top major trend reversal. Without it, the odds favor sideways to up.
- The bulls want to trap the bears selling above bar 7, betting on a 2nd leg down.
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.
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.
