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Emini Unable to Escape 6,000 Round Number

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Trading Update: Thursday November 7, 2024

Emini end of day video review

Price Action Rose EOD Review

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S&P Emini market analysis

Emini daily chart

  • The Emini gapped up yesterday and formed a bull bar closing near its high. This is a strong enough upside breakout that the odds favor a second leg up.
  • The market is getting within 50 points of the 6,000 round number and is probably close enough that it cannot escape the gravitational pull of 6,000.
  • The rally from November 5th is getting climactic, which increases the odds that it will begin to go sideways soon.
  • It is possible that the market gets within 10-20 points of 6,000 and pulls back first.
  • Today is an FOMC day, which means that this could be the catalyst that causes the break above the 6,000-round number.
  • Because the bears have been testing most of the breakout points during the rally up from the November 5th low, traders will expect a test of the October 17th high sometime soon.

Emini 5-minute chart and what to expect today

  • The Emini gapped up on the open and 5,984, within 20 points of the 6,000 round number.
  • The market may have to close the gap above yesterday’s high before it reaches 6,000.
  • Because 6,000 is such an important magnet, it is possible that the market will not go much higher today and will have to pull back before reaching 6,000.
  • The market has been very bullish over the past few days, which increases the odds of 6,000 being tested today.
  • Today is an FOMC day, meaning traders should be flat going into the report at 2:00 PM EST.
  • Traders should wait at least 10 minutes before trading after the release of the FOMC report. This is because reversals are often common.

Yesterday’s Emini setups

SP500 Emini 5-Min Higher Low DB Then Small PB Bull Trend

Al created the SP500 Emini chart.

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-Min Chart Bull Trend From Open Trading Range Late Breakout

Richard created the SP500 Emini chart – Al travelling.

EURUSD Forex market analysis

EURUSD Forex daily chart

EURUSD Daily Bulls Want 2nd Leg Trap
  • The EURSD formed a bad follow-through today after the November 6th downside breakout.
  • The bulls are hopeful that November 6th will be a 2nd leg trap that will lead to a reversal up and test of the breakout bar high.
  • At the moment, the odds are against the market going straight up.
  • November 6th is a strong enough downside breakout that the odds favor a 2nd leg down and the retest of the close.
  • Because of the bad follow-through after the November 6th outside down bar, the odds favor a trading range.
  • Overall, the downside is probably limited for the next several bars. The bears will try to get today to form a strong bear bar, closing on its low to undo yesterday’s bull reversal bar.

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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