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Emini Likely to Continue Sideways to Up

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Trading Update: Tuesday October 22, 2024

Emini end of day video review

Price Action Rose EOD Review

Follow Price Action Rose’s YouTube channel for more Al Brooks price action analysis.

S&P Emini market analysis

Emini daily chart

  • The Emini formed a doji bar yesterday and failed to close far below last Thursday’s sell signal bar. This is a bad follow-through for the bears and increases the odds of sideways to up trading.
  • Traders see the 6,000 round number just about and are hesitant to sell until the market gets to it.
  • The bears are doing a good job making the market go sideways, but they have not done enough to increase the odds of a strong downside breakout below the moving average.
  • There are probably buyers below yesterday’s low since it is a bad sell signal bar, and it is in the bottom 1/3rd of the six-day tight trading range.

Emini 5-minute chart and what to expect today

  • The Emini gapped down on the open and formed a tight trading range for the first 7 bars of the day, just above yesterday’s low.
  • This increases the odds of a test of the moving average.
  • The bears are hopeful that the gap down is strong enough for a second leg down.
  • As of bar 9, the market is probably Always In Long.  The bulls are hopeful that the breakout will grow and lead to a trend from the open.
  • The bears formed a deep pullback down to bar 15, which is disappointing for the bulls.
  • The Bulls formed an upside breakout on 16-17, which is strong enough for a 2nd leg up. However, it is a possible double top with bar 8 after a gap down. This increases the risk of a 2nd leg trap if the bears get more selling pressure. At the moment, the bears need more.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart Wedge Top and Then Strong Bear Breakout

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.

Summary of today’s S&P Emini price action

SP500 Emini 5-Min Chart Bull Channel and Midday Acceleration Up

Al created the SP500 Emini charts.

EURUSD Forex end of day market analysis

EURUSD Forex daily chart

  • The EURUSD formed another bear bar today, closing on its low.
  • The channel up is tight, this increases the odds of a minor reversal up and a test of the moving average.
  • It is reasonable for bears to exit above a bull bar, closing on its high and expect a couple of legs sideways to up.
  • Overall, the odds favor a pullback and a couple of legs sideways to up to the moving average. However, because the channel up is tight, the odds of a retest of the October selloff increase.

EURUSD what to expect going forward

  • Tomorrow will probably disappoint the bears and not form another strong bear trend bar. This means that yesterday’s low may act as support.
  • Because the market is getting far from the moving average on the daily chart, there is an increased risk of any day getting a sharp reversal up. Even if the reversal happens, it will likely be minor.

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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