Trading Update: Thursday October 24, 2024
Emini end of day video review
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S&P Emini market analysis
Emini daily chart
- The Emini broke blow the tight trading on the open and the 20-period moving average on the daily chart.
- Yesterday’s bear breakout bar failed to close on its low due to traders buying at the moving average, which was expected.
- The bulls want a reversal up from the moving average and an upside breakout above yesterday’s high.
- The problem the bulls have is that yesterday’s high is a bad buy signal bar, which increases the odds of sellers above it and sideways trading.
- The odds still favor the market getting to the 6,000 round number, even if the market pulls back first.
- A major reversal is unlikely, which means the best the bears can expect is a trading range and not a bear trend on the daily chart.
Emini 5-minute chart and what to expect today
- The Emini formed a small gap up, and bar 1 closed on its low.
- Bar 1 is strong enough that the odds favor a second leg down.
- Because of the overlap over the past 6 bars, traders will expect the open to have a lot of trading range price action.
- Most traders should try to catch the opening swing that often begins before the end of the second hour after forming a double top/bottom or a wedge top/bottom.
- This means that a trader can often wait for one of the abovementioned patterns to form and enter or for a stop entry for a credible swing trade that lasts two legs and usually two hours.
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.
EURUSD Forex end of day market analysis
EURUSD Forex daily chart
- Note, going forward the EURUSD will be released during the pre-market hours and not after U.S. Session close.
- The EURUSD is forming a parabolic wedge bottom at the August Low.
- Today, a strong bull reversal bar was formed, closing on its high. It is reasonable for bears to exit above and wait to see what the pullback looks like.
- The bulls hope this is the start of a strong reversal up. The odds favor a minor reversal up, which means a trading range or bear flag.
- There are probably sellers near the moving average, depending on the test of the moving average.
- The bulls have an opportunity to trap the bears and get a strong follow-through bar tomorrow. This would increase the odds of higher prices.
- Even if Friday is a bear reversal bar, buyers will probably be below.
- Overall, it is reasonable for swing bears to exit above Thursday’s high and look to sell again after a couple of legs sideways to 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.
