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Emini Bulls Want Strong Entry Bar

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Trading Update: Monday January 6, 2025

Emini end of day video review

Emini EOD Review Joseph Imbornone

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S&P Emini market analysis

Emini daily chart

  • The Emini formed a double bottom with the December 20th and January 2nd low. They are hopeful that today will becoming a strong entry bar, leading to an upside breakout.
  • The bulls formed a reasonable buy signal bar, closing on its high last Friday, increasing the risk that the bears would exit above the bar, which is why the Globex market rallied during the early morning hours.  
  • The Bulls are hopeful that they will close far above last Friday’s high today, which would sign strong buying pressure for them.
  • Next, the bulls want a test of the December 26th high and a test up to the December 6th All-Time High.
  • The bears are hopeful that the upside will fail to break above the December 26th high and will lead to a lower high, followed by a test fellow at the January 6th low.
  • Overall, the bulls are likely to get a second leg up, which increases the odds of a test up to the December 26th low.

Emini 5-minute chart and what to expect today

  • The U.S. Session gapped up and is trying to form a bull trend from the open.
  • The rally up to bar 7 forms a parabolic wedge top, increasing the risk of a reversal down.
  • parabolic wedges are breakouts on higher time frames. This means that the odds are any reversal down after bar 7 leads to a minor reversal.
  • The problem the bulls face is that the higher time frame charts, such as the 15-minute Globex market, are getting climactic. This increases the odds of a reversal down.
  • The bulls are hopeful that the bull trend from the open will last all day. There is a 60% chance that the rally will convert into a trading range and not last all day.

Friday’s Emini setups

SP500 Emini 5-Min Chart Opening Trading Range Reversals Then Bull Trend Resumption

Richard created the SP500 Emini chart – Al travelling.

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

SP500 Emini 5-Min Chart Wedge Top Then Major Reversal Down

Al created the SP500 Emini chart.

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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