Trading Update: Monday January 13, 2025
Emini end of day video review
You can also watch Joseph’s EOD Review for today on his YouTube channel.
S&P Emini market analysis
Emini daily chart
- The daily chart closed below the January 2nd low last Friday, demonstrating strength by the bears. The bears are hopeful that the selloff will reach the November 4th low.
- The bulls see the current breakout below the January 2nd low as a bear breakout below the bear channel.
- The bulls want today to lead to disappointment for the bears and the market to lead to a reversal. They are hopeful that today, a strong bull reversal bar will form, which would entice some bulls to exit above the bar.
- The market is so close to the November 4th low that it will probably have to reach it in the next couple of days.
Emini 5-minute chart and what to expect today
- The Emini gapped down and has gone sideways for the first 12 bars of the U.S. Session.
- The bears are hopeful that the rally up to last Friday’s low is a pullback that will lead to a channel down following the gap down.
- The bulls want the opposite. They see the market as forming a trading range open and will be low enough to buy any reversal down. Bar 13 is a reminder that today will probably have a lot of trading range price action.
- Most traders are better off waiting for a clear breakout with follow-through beyond the opening range before placing a trade.
- It is best to assume that the open trading range can last longer than what seems reasonable.
- Traders should pay attention to the day’s open and last Friday’s low as both will likely be essential magnets today. After last Friday’s downside breakout bar, the bulls want to create bad follow-through. This means that today is unlikely to be a big bear trend day and is more likely to develop a trading range.
Friday’s Emini setups
Al created the SP500 Emini charts.
Here are reasonable stop entry setups from Friday. 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.
