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Emini Bulls Want Double Bottom

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Trading Update: Thursday January 2, 2025

Emini end of day video review

Emini EOD Review Joseph Imbornone

Follow Joseph’s YouTube channel for more Al Brooks price action analysis.

S&P Emini market analysis

Emini daily chart

  • The Emini is forming a double bottom with the December 20th and 31st low.
  • The Bulls are hopeful that today forms a reversal up and leads to a test of the December 26th neckline.
  • Next, the bulls want a breakout above the December 26th high, followed by a test of the December all-time high.
  • The bears still see the December 18th bear breakout as strong enough to lead to a 2nd leg down.
  • Overall, the daily chart is likely to develop a triangle, which is a form of breakout mode. This increases the risk that the daily chart will go sideways for several bars within the December range. 

Emini 5-minute chart and what to expect today

  • The Emini gapped up on the open and was followed by two strong consecutive bear bars on the open.
  • The bears were hopeful that the market would get a 2nd leg down. However, the Bulls managed to get a strong reversal up with bars 3-5. As of bar 9, the market is Always In Long and likely to go higher.
  • The bulls want a 2nd leg up after the bull rally to bar 6, and the bears want a reversal down and test of the bar 2 close.
  • Bar 15 reached the close of bar 2. Because of all the trading range price action today, the odds favor buyers below the bar 3 low and the market going sideways. The bears need to get a clear breakout with follow-through below the bar 3 low if they are going to drive the market lower.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart Double Top and Then Bear 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 Broad Trading Range Open and Bear Channel

Richard created the SP500 Emini chart – Al travelling

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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