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Emini Bulls Getting Upside Breakout

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Trading Update: Wednesday January 15, 2025

S&P Emini market analysis

Emini daily chart

  • The Emini formed a weak bear reversal bar yesterday, following Monday’s wedge bottom bull reversal bar. The bulls are getting their upside breakout during the early morning hours, which increases the odds of higher prices.
  • Yesterday was a low probability short below it. This increases the odds of buyers below the bar.
  • Because yesterday was such a weak-looking sell below the bar, the market became overwhelmed with buying, leading to the Emini getting a gap up on the open of the U.S. Session today.
  • The bulls will see a wedge bottom with the January 13th low. Next, they want a rally to the January 6th most recent major lower high.
  • The bulls are hopeful that today will be a strong bull breakout above yesterday’s high, which, at the moment, it looks like the bulls will succeed.
  • The odds favor two legs up, which means there are probably buyers on any reversal down.

Emini 5-minute chart and what to expect today

  • The Emini opened with a large gap up. This makes the market always in long and increases the risk of a bull trend or trading range day.
  • The issue the bulls have on the open is that the market Is far from the average price. This increases the odds that the market will have to get closer to the moving average sometime soon.
  • This does not mean that a selloff to the moving average is likely. The market can instead form a trading range and drag the moving average up to the current price.
  • The open has had a lot of buying pressure. This means that it is better to only be looking to buy and not looking to go short until there is more selling pressure.

Yesterday’s Emini setups

SP500 Emini 5-Minute Chart Double Top Then Wedge Bottom

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-Minute Chart Parabolic Wedge Top Then Double Bottom

Al created the SP500 Emini charts.

Emini end of day video review

Periodic end of day review videos will be moved to top of page when done.

EURUSD Forex market analysis

EURUSD Forex daily chart

  • The EURUSD had been in a bear channel on the daily chart for the past several months.
  • The bulls have managed to get only one bull close above the moving average in the past 50 bars. This is a sign of strong selling pressure.
  • The bulls are making money below bars with limit orders below bars. This is a sign that the daily chart will likely convert into a trading range soon.
  • The bulls need to close above the moving average to convince traders that they are beginning to take control of the daily chart.
  • Without closes above the moving average, bears will continue to bet that every test of the moving average will fail and lead to lower prices.

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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