{"id":168132,"date":"2023-01-10T06:20:00","date_gmt":"2023-01-10T14:20:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=168132"},"modified":"2023-01-15T20:56:41","modified_gmt":"2023-01-16T04:56:41","slug":"emini-bears-follow-through-wanted","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/emini-bears-follow-through-wanted\/","title":{"rendered":"Emini Bears Second Leg Trap Follow-through Wanted"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Trading Update: Tuesday January 10, 2023<\/h3>\n\n\n\n<h2 class=\"wp-block-heading\">Emini pre-open market analysis<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Emini daily chart<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Emini sold off yesterday, creating disappointment following last Friday\u2019s outside up bar.<\/li>\n\n\n\n<li>Follow-through wanted by bears today, increasing the odds that last Friday was a second leg trap for the bulls. <\/li>\n\n\n\n<li>The bulls reached the December 6<sup>th<\/sup> breakout point, and the market found resistance.<\/li>\n\n\n\n<li>Traders bought around the December 6<sup>th<\/sup> low and got trapped during the December 15<sup>th<\/sup> selloff. Many of those traders would scale in lower and were disappointed enough that they exited their longs back at their original entry (December 6<sup>th<\/sup> low).<\/li>\n\n\n\n<li>The bears see the two-day pullback as a rally testing resistance (December 6<sup>th<\/sup> low). Next, the bears want a second leg down from the December 13<sup>th<\/sup> selloff.<\/li>\n\n\n\n<li>When you have a trading range, it is common for the selloff to go below the breakout point before the bears get their second leg down.<\/li>\n\n\n\n<li>The bears want the past two trading days to be a second-leg trap. While the bears have a good signal bar, traders will wonder if last Friday\u2019s breakout is strong enough for a second leg up.<\/li>\n\n\n\n<li>The bears are hopeful yesterday will trap the eager bulls into buying too high and that the market will sell off to the low of last Friday at a minimum.<\/li>\n\n\n\n<li>it is reasonable for bulls to exit, and many may have gotten out early before yesterday\u2019s close, anticipating a gap down. &nbsp;<\/li>\n\n\n\n<li>Overall, traders will pay close attention to the follow-through today. if the bears can get a strong entry bar, it will increase the odds of a second leg down from the December 13<sup>th<\/sup> selloff.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/Emini-5-Min-Wedge-Top-Reversal-into-Bear-Trend.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/Emini-5-Min-Wedge-Top-Reversal-into-Bear-Trend-680x383.jpg\" alt=\"\" class=\"wp-image-168569\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/Emini-5-Min-Wedge-Top-Reversal-into-Bear-Trend-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/Emini-5-Min-Wedge-Top-Reversal-into-Bear-Trend-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/Emini-5-Min-Wedge-Top-Reversal-into-Bear-Trend-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/Emini-5-Min-Wedge-Top-Reversal-into-Bear-Trend-1536x864.jpg 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/Emini-5-Min-Wedge-Top-Reversal-into-Bear-Trend.jpg 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Emini 5-minute chart and what to expect today<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Emini is down 2 points in the overnight Globex session.<\/li>\n\n\n\n<li>The Globex market went sideways in a tight trading range for the majority of the overnight session.<\/li>\n\n\n\n<li>The bears got a downside breakout around 3:15 AM PT. The bears are hopeful this breakout will lead to a second leg down and follow-through from yesterday\u2019s selling. But the 6.00am PT report with Fed Chair Powell speaking has resulted in a rally back into overnight range.<\/li>\n\n\n\n<li>More likely, today will disappoint the bears and add to the confusion of the daily chart.<\/li>\n\n\n\n<li>With yesterday\u2019s late climactic selling, traders should expect at least two hours of sideways trading today.<\/li>\n\n\n\n<li>Since yesterday\u2019s late selloff was climactic, there is typically a 75% chance of two hours of sideways trading beginning before the end of the second hour.<\/li>\n\n\n\n<li>As I often say, most traders should consider waiting for 6-12 bars before trading. This will help prevent a trader from getting trapped on the wrong side of a failed breakout since most breakouts fail on the open.<\/li>\n\n\n\n<li>Traders can also wait for a credible stop entry in the form of a double top\/bottom or a wedge top\/bottom.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Emini intraday market update<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The market formed a big bull bar on bar 1. However, it failed to get follow-through, which increased the odds of sideways trading.<\/li>\n\n\n\n<li>Because of bar 1, the odds are that the day will form a bull trend or a trading range day.<\/li>\n\n\n\n<li>The market went below bar 1, formed a double bottom with bar 5, and rallied to a new high of the day at 7:20 AM PT.<\/li>\n\n\n\n<li>The bears got a strong selloff to a new low of the day at 7:50 AM PT. This was a strong enough selloff to increase the odds of a bear trend or TR.<\/li>\n\n\n\n<li>At the time of writing this 8:00 AM PT, the market has three consecutive bull bars and is testing the 7:20 AM PT bear signal bar. There will likely be sellers around the 7:20 low, and the market will begin to go sideways.<\/li>\n\n\n\n<li>The market is forming a large triangle, which is trading range price action. Traders should expect a trading range to last for some time.<\/li>\n\n\n\n<li>As Al often says: \u201cuntil there is a breakout, there is no breakout.\u201d The market is getting many breakouts within the overall trading range. Until there is a clear breakout and follow-through closing far above the day\u2019s extreme, the market will likely remain in a trading range day.<\/li>\n\n\n\n<li>Traders need to be cautious about buying after a second leg up at the top of the range and about selling a second leg down at the bottom.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Yesterday&#8217;s Emini setups (Delayed: Chart will be posted Mid-Afternoon on Jan 11th)<\/h3>\n\n\n\n\n\n<p><em>Brad created the SP500 Emini charts.<\/em><\/p>\n\n\n\n<p class=\"caption\">Here are several reasonable stop entry setups from yesterday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. Buyers of both the Brooks Trading Course and Encyclopedia of Chart Patterns have access to a much more detailed explanation of the swing trades for each day (see Online Course\/BTC Daily Setups).<\/p>\n\n\n\n<p class=\"caption\">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.<\/p>\n\n\n\n<p class=\"caption\">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.<\/p>\n\n\n\n<p class=\"caption\">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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">EURUSD Forex market trading strategies<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">EURUSD Forex daily chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Bulls-Breakout-above-January-High.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Bulls-Breakout-above-January-High-680x383.jpg\" alt=\"EURUSD Daily: Bulls Breakout above January High. Follow-through wanted.\" class=\"wp-image-168214\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Bulls-Breakout-above-January-High-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Bulls-Breakout-above-January-High-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Bulls-Breakout-above-January-High-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Bulls-Breakout-above-January-High-1536x864.jpg 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Bulls-Breakout-above-January-High.jpg 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The bulls got a strong entry bar following last Friday\u2019s strong outside up bar.<\/li>\n\n\n\n<li>Bulls want an upside breakout above the January high; however, even if they get it, the odds favor sellers not far above.<\/li>\n\n\n\n<li>The daily chart has been in a bull channel since the November 21<sup>st<\/sup> low and is likely evolving into a trading range.<\/li>\n\n\n\n<li>On the higher time frame charts like the weekly chart, the rally from October is a strong reversal up from the tight bear channel that began back in early 2021.<\/li>\n\n\n\n<li>This reversal up on the weekly chart is still probably a minor reversal up, which means the bulls will probably need a higher lower to get a major trend reversal and a second leg up.<\/li>\n\n\n\n<li>This means that the EURUSD could easily sell off 300 pips before the bulls get a higher low major trend reversal setup.<\/li>\n\n\n\n<li>Overall, traders should expect mostly sideways trading over the next few weeks.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Summary of today&#8217;s S&amp;P Emini futures price action and what to expect tomorrow<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/Emini-5-Min-Expanding-Triangle-Open-Small-PB-bull-trend.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/Emini-5-Min-Expanding-Triangle-Open-Small-PB-bull-trend-680x383.jpg\" alt=\"Emini 5 Min: Expanding Triangle Open, Small Pullback Bull Trend\" class=\"wp-image-168247\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/Emini-5-Min-Expanding-Triangle-Open-Small-PB-bull-trend-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/Emini-5-Min-Expanding-Triangle-Open-Small-PB-bull-trend-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/Emini-5-Min-Expanding-Triangle-Open-Small-PB-bull-trend-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/Emini-5-Min-Expanding-Triangle-Open-Small-PB-bull-trend-1536x864.jpg 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/Emini-5-Min-Expanding-Triangle-Open-Small-PB-bull-trend.jpg 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<p><em>Brad created the SP500 Emini charts.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">End of day review<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The market went sideways for the first two hours and transitioned into a small pullback bull trend for the rest of the day.<\/li>\n\n\n\n<li>Bar 1 was a big bull bar; however, the follow-through was bad, which increased the odds of trading range price action and sideways. Also, the context of the bar was bad. Yesterday was a tight bear channel, so the odds favored a trading range open.<\/li>\n\n\n\n<li>Bar 1 was big enough to increase the odds of the day is either a bull trend or a Trading range day, though, and lowers the probability of a bear trend.<\/li>\n\n\n\n<li>The bulls got a double bottom on bar 5; however, it is following a four-bar microchannel and forcing traders to buy at the top of a trading range. Also, the bull that bought the 1 close is trapped, and they may use the bar 5 exit around breakeven.<\/li>\n\n\n\n<li>The market formed a second leg trap at 9:15 AM PT and sold off to a new low of the day.<\/li>\n\n\n\n<li>The bulls formed a Lower Low Major Trend Reversal. However, following a 7-bar bear microchannel increased the odds of the reversal up being minor.<\/li>\n\n\n\n<li>The market formed a deep pullback and a Higher Low Major Trend Reversal and formed a small pullback bull trend into the close.<\/li>\n\n\n\n<li>Overall, today was a good day for the bulls. The bulls managed to revere yesterday\u2019s bear bar, and not the bulls need to get a follow-through tomorrow.<\/li>\n<\/ul>\n\n\n\n<p><em>See the <a rel=\"noreferrer noopener\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/analysis\/\" target=\"_blank\">weekly update<\/a> for a discussion of the price action on the weekly chart and for what to expect going into next week.<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Trading Room<\/h2>\n\n\n\n<p>Al Brooks and other presenters talk about the detailed Emini price action real-time each day in the BrooksPriceAction.com <a href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\" target=\"_blank\" rel=\"noreferrer noopener\">trading room<\/a>. We offer a <a href=\"http:\/\/www.brookspriceaction.com\/portal.php?page=11\" target=\"_blank\" rel=\"noreferrer noopener\">2 day free trial<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Charts use Pacific Time<\/h3>\n\n\n\n<p>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 <a href=\"https:\/\/www.brookstradingcourse.com\/blog\/market-update\/\" target=\"_blank\" rel=\"noreferrer noopener\">Market Update<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Trading Update: Tuesday January 10, 2023 Emini pre-open market analysis Emini daily chart Emini 5-minute chart and what to expect today Emini intraday market update Yesterday&#8217;s Emini setups (Delayed: Chart will be posted Mid-Afternoon on Jan 11th) Brad created the SP500 Emini charts. Here are several reasonable stop entry setups from yesterday. I show each [&hellip;]<\/p>\n","protected":false},"author":5460,"featured_media":168214,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[153,136],"tags":[281,60,1877],"class_list":{"0":"post-168132","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-market-update","8":"category-analysis","9":"tag-eurusd-forex","10":"tag-sp-emini","11":"tag-second-leg","12":"entry","13":"override","14":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Bulls-Breakout-above-January-High.jpg","author_info":{"display_name":"Brad","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/brad-wolff\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/168132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/5460"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=168132"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/168132\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/168214"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=168132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=168132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=168132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}