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Emini Consecutive Inside Bars on Daily chart

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Trading Update: Tuesday July 30, 2024

S&P Emini pre-open market analysis

Emini daily chart

  • The Emini Daily chart formed a 2nd inside bar on the Day-only chart. This is a consecutive inside-bar pattern, which is a triangle on a smaller time frame.
  • This is a breakout mode pattern on a smaller time frame. Triangles, in general, have a 50% probability of directional breakout, which means that context is the most important factor.
  • The bears are hopeful that the downside breakout over the past two weeks below the moving average is strong enough that the consecutive inside bars will lead to a downside breakout.
  • More likely, because the market is at the 5,500 round number, the odds favor buyers below and a pullback on the daily chart.
  • This increases the odds of the bears needing to form a lower high major trend reversal before the bears get their second leg down.
  • Overall, traders should expect sideways to up on the daily chart, lasting a couple of legs.

Emini 5-minute chart and what to expect today

  • The Emini rallied on the first two bars of the day and formed a tight bear channel down to bar 14.
  • This increases the odds of the day becoming a bear trend or a trading range day and not a bull trend day.
  • At the moment, the selloff is strong enough that the market may try and test yesterday’s low.
  • The bulls are hopeful that the selloff down to bar 14 is forming a parabolic wedge bottom in an overall trading range. This would increase the risk of a reversal or deep pullback.
  • Bar 14 the market is probably Always In Short, but the context is not good for the bears. It is at the bottom of a trading range and possibly failed breakout below yesterday’s bar 81 close. This increases the risk of a pullback.

Yesterday’s Emini setups

SP500 Emini 5-Minute Chart Wedge Top and Then Trading Range

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 rallied for most of July, creating a parabolic wedge top near the high of the trading range. 
  • The bears were able to produce a deep pullback that lasted for several days. 
  • The selloff is strong enough that any test of the July high will likely lead to a trading range. 
  • The bulls hope the recent selloff will find support at the midpoint of the July rally. 
  • Tomorrow is the FOMC report, which means that the market may decide tomorrow on trend resumption or reversal for the bulls. 
  • Overall, the market is in a trading range, increasing the odds of disappointment for the bulls. 

Summary of today’s S&P Emini price action

SP500 Emini 5-Minute Chart Bear Trend From Open Then Trading Range

Al created the SP500 Emini charts.

End of day video review

End of Day Review was hosted in the Trading Room Today. You can access the recording by being a subscriber to the trading room.

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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