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Emini Buyers below Yesterday’s Low

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Trading Update: Tuesday August 27, 2024

S&P Emini market analysis

Emini daily chart

  • The Emini formed a weak bear bar yesterday, following last Friday’s bull inside the bar. This increases the odds of buyers below.
  • The bears are hopeful that yesterday is a strong enough reversal bar that it will entice bulls to exit longs and bears to begin selling. However, the issue with yesterday’s bar is the tail below it, which is in the middle of a tight trading range.
  • The reasons above increase the odds of buyers below yesterday’s low and the market continuing to go sideways.
  • The rally up to the August high is strong. This increases the odds that the market is going to have to test up to the 5,700 round number and the all-time high.
  • The momentum up on the daily chart is good for the bulls. However, the context is not great due to the market being high in a trading range.
  • The bears need to continue to add to the selling pressure; otherwise, the odds favor higher prices.
  • Every bear bar that gets added increases the odds of the market forming a tight trading range. If the bears can make the market go sideways for enough time, the probability

Emini 5-minute chart and what to expect today

  • The Emini gapped down and formed an opening reversal with bar 3.
  • The bears tried to get the downside breakout; however, it was at the bottom of a large bear channel from yesterday. This increased the odds of a reversal up.
  • The bulls formed a strong upside breakout with bar 5. This made the market Always In Long.
  • Bar 5 was a climactic bar, which increased the odds that the market would go sideways to 3-5 bars.
  • The bulls formed a second leg up with bars 11-12.
  • As of bar 15, the market is Always In Long. The problem the bulls face is that the rally is within yesterday’s range. Since yesterday was a bear channel, this increases the risk that today’s rally is a test of the top of the bear channel; yesterday’s bar 12

Yesterday’s Emini setups

SP500 Emini 5-Minute Chart Bear Trend From Open 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 formed a bad follow-through bar today, following last Friday’s strong bull breakout bar on the daily chart.
  • Last Friday, the best-looking bull bar was late in a rally, which was far from the moving average.  This increases the odds of a pullback lasting a bar or two.
  • The daily chart is forming a parabolic wedge. However, it is important to realize that parabolic wedges are minor reversals that typically lead to trend resumption in tight bull channels.
  • Even if the bears get a couple of legs sideways to down, the odds will still favor buyers below.
  • Overall, the daily chart will probably have to pullback and test closer to the moving average soon.

Summary of today’s S&P Emini price action

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

Al created the SP500 Emini charts.

End of day video review

End Of Day Review will be presented in the Trading Room today. See below for details on how to sign up.

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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