Trading Update: Monday December 23, 2024
Emini end of day video review
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S&P Emini market analysis
Emini daily chart
- The Emini formed a large bull reversal bar last Friday, following Thursday’s Low 1 sell signal bar. The Bulls did a good job with the reversal up. However, they will likely be disappointed as Bears begin to scale into shorts.
- While last Wednesday’s selloff was strong, it was testing near support (November 19th low). This increased the odds that the bears would take partial profits soon after the selloff, which is why last Friday, a reversal bar was formed.
- Last week’s selloff was strong enough to get a second leg down. This increases the risk of a bear looking to sell during last Friday’s rally. This means that the Emini will probably have to test down to last Thursday’s Low 1 sell signal bar over the next several days.
Emini 5-minute chart and what to expect today
- The Emini has formed a bear trend from the open and are hopeful they can make the bear trend last all day.
- The bears are getting bad follow-through after each downside breakout. This increases the odds of a trading range forming soon and the bulls getting a reversal up.
- The bear breakout on bars 7-8 is strong but late in a bear trend. This increases the odds that the 5-minute chart will soon evolve into a trading range.
- The bears are allowing too much buying pressure, which increases the odds of the bears taking profits soon.
Friday’s Emini setups
Al created the SP500 Emini charts.
Here are reasonable stop entry setups from Friday. 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 market analysis
EURUSD Forex daily chart
- The bears formed a downside breakout last Wednesday, a retest of the November low in the bear channel.
- Because the bears were disappointed by the pullback that lasted for several weeks, the EURUSD found profit, taking back the November low.
- The December 18th bear breakout is strong enough that the odds favor a 2nd leg down, so the bears are trying to form a bear reversal bar.
- Bause, the December 18th selloff was a second leg down low in a trading range, and the odds favored bad follow-through buying.
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.
