Trading Update: Tuesday October 15, 2024
End of day video review
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S&P Emini market analysis
Emini daily chart
- The Emini closed as a bull bar yesterday and above the 5,900 round number.
- The market is close enough to 6,000 that it may be unable to escape the gravitational pull of it.
- Because 6,000 is such an obvious magnet, there may be sellers before the market reaches the round number. This means the Emini may have to pull back before reaching the 6,000-round number.
- The market rallied about 100 points above the August 26th high and is getting near that same distance above the September 26th high. This increases the odds that there will be sellers near yesterday’s high due to traders expecting a test of the September 26th breakout point high.
- Overall, the bulls have done a great job with the rally. However, as stated above, because the market is getting near resistance, traders will likely begin to take profits between yesterday’s high and the 6,000-round number.
Emini 5-minute chart and what to expect today
- The Emini opened with a small gap up on the start of the U.S. Session which was likely to close within the first hour.
- The market has formed a tight trading range with the first 6 bars. This increases the odds that today will have a lot of trading range price action today.
- Traders should pay attention to yesterday’s high as it will likely be a magnet.
- Today is likely to disappoint the bulls and not be another strong bull trend day. This means that traders should expect today to possibly close below the open or form a weak bull doji bar.
- The bulls want the opposite and for today to form other strong bull bars and get close to the 6,000 round number.
Yesterday’s Emini setups
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
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.
