Trading Update: Tuesday July 25, 2023
S&P Emini pre-open market analysis
Emini daily chart
- The Emini has been above the 20-period exponential moving average (Blue line) for 38 bars. This is a sight of a tight bull channel and an Always In Long market.
- While the bulls have done a good job, they are beginning to lose momentum to the upside. This increases the odds of sideways trading as bulls take partial profits and bears sell above bars.
- Traders are happy to buy above the moving average when the momentum is strong; however, as the moment begins to dry up, traders will see the market as expensive and overbought if the market is far away from the moving average. This increases the odds that the market will have to pull back and get close to the moving average.
- The market broke above last Friday’s inside bar yesterday but failed to close above it. This is a sign of hesitation and weakness by the bulls.
- Traders should be open to the possibility of the bears getting a second leg down following the three-bar microchannel.
- Overall, traders should expect the market to go sideways, get closer to the moving average, and possibly test back to 4,500.
Emini 5-minute chart and what to expect today
- Emini is down 2 points in the overnight Globex session.
- The Emini has been above the 20-period exponential moving average (Blue line) for 38 bars. This is a sight of a tight bull channel and an Always In Long market.
- While the bulls have done a good job, they are beginning to lose momentum to the upside. This increases the odds of sideways trading as bulls take partial profits and bears sell above bars.
- Traders are happy to buy above the moving average when the momentum is strong; however, as the moment begins to dry up, traders will see the market as expensive and overbought if the market is far away from the moving average. This increases the odds that the market will have to pull back and get close to the moving average.
- The market broke above last Friday’s inside bar yesterday but failed to close above it. This is a sign of hesitation and weakness by the bulls.
- Traders should be open to the possibility of the bears getting a second leg down following the three-bar microchannel.
- Overall, traders should expect the market to go sideways, get closer to the moving average, and possibly test back to 4,500.
Yesterday’s Emini setups
Al created the SP500 Emini charts.
EURUSD Forex market trading strategies
EURUSD Forex daily chart
- The EURUSD formed a five-bar microchannel down following the July bull breakout of the May high.
- The recent selloff is probably strong enough to make the market Always In Short; however, a trading range is more likely than a strong reversal down. This means a pullback is likely soon.
- The recent reversal down is likely strong enough to get a second leg down after and pullback.
- The market may have to get down to the July 12th low and test the bottom of the strong bull breakout. This is common when the market is in a trading range.
- Overall, the market will likely get a second leg down. However, the market probably will have to test higher first. This means the market will probably go sideways soon for a few weeks.
Summary of today’s S&P Emini price action
Al created the SP500 Emini charts.
End of day video review
Today’s End Of Day review will be presented in the Trading Room and only available to the trading room subscribers.
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.