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Emini Bears Want Double Top

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Trading Update: Wednesday November 27, 2024

S&P Emini market analysis

Emini daily chart

  • The Emini yesterday formed a bull bar closing under Monday’s high. The market is getting near the November 11th all-time high, and profit will likely be taken at this price level. The Bears are hopeful that the market is forming a double top.
  • The bulls have formed a microchannel over the past six trading days. This increases the odds of buyers on the first reversal down.
  • The bears hope the market will form a double top with the November 11th high. Next, they want a break below the November 19th low, followed by a measured move down.

Emini 5-minute chart and what to expect today

  • The Globex market formed a two-legged selloff overnight, following the tight bull channel on the 15-minute chart.
  • Bull channels typically evolve into trading ranges, which is what is likely happening here.
  • As always, traders should assume that today, there will be a lot of trading range price action on the open.
  • There is an 80% chance of a trading range open and only a 20% chance of a trend from the open.
  • Most traders should look to catch the opening swing that often begins before the end of the second hour.
  • A trading range is always a double top/bottom variation or a wedge top/bottom. Since a trading range is most likely on the open, a trader can wait for one of the patterns mentioned above to form before placing a trade.
  • The most important thing on the open is to be patient and not in a rush.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart Wedge Pullback to EMA Then Bull Channel

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 Double Top, Bear Channel, Minor Reversal into TR

Richard created the SP500 Emini chart – Al on Thanksgiving leave.

Emini end of day video review

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

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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