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Emini Sellers at Daily Moving Average

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Trading Update: Monday August 12, 2024

S&P Emini pre-open market analysis

Emini daily chart

  • The Emini formed another bull bar last Friday as it tested closer to the moving average and the 5,400-round number. Because of the recent strong selloff, there are likely sellers at the above-mentioned magnets.
  • While the rally up from the August 5th low has been disappointing for the Bears, the odds favor it becoming a pullback and the Bears getting a second leg down.
  • The bears see the selloff down from the July 16th high as being strong enough for a second leg down. This means that there are likely bears selling above bars, scaling in higher.
  • The market came within 100 points of the 5,000-round number during the August 5th selloff.
  • The 5,000 round number is very important and will likely remain an important price level for a very long time. This means that the odds favor a test of the 5,000 round number and the market falling below it.
  • While the bulls did a good job last week getting a reversal up from the 5,000 test of the round number, they will probably be disappointed this week.
  • Bears will likely sell above last Friday’s high, expecting resistance near the 5,400 round number and the daily moving average.

Emini 5-minute chart and what to expect today

  • The Bears formed a strong selloff on the open. However, the Bulls formed a strong reversal up on bar 7-8.
  • The bar 7 and 8 breakout is strong enough for a second leg up.
  • The bulls want the market to test up to the 5,400 round number and the moving average.
  • The bears should not have allowed the bar 7 and 8 reversal up, and this increases the odds of a trading range day and not a bear trend day.
  • As of bar 10, traders should expect the bulls to get a second leg up, however they may have to sit through a deep pullback due to the bar 2-3 bear breakout.

Friday’s Emini setups

SP500 Emini 5-Minute Chart Bull Trending Trading Range Day

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

SP500 Emini 5-Minute Chart Sell Climax and Then Trading Range

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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