Curso de Trading do Brooks

Aprenda a operar price action consistentemente

 

More results...

Emini Failed Breakout above January 24th Major Lower High

By

Trading Update: Friday February 21, 2025

S&P Emini market analysis

Emini daily chart

  • The daily chart pulled back yesterday after going above the January 24th major lower high. This is a possible failed breakout above the January 24th major lower high.
  • The daily chart is likely in a trading range, which means that the odds favor the bulls getting disappointed by the rally.
  • The bears are hopeful that yesterday is the start of a reversal down and that today will create follow-through selling in the form of a strong bear bar closing on its low.
  • More likely, today will not disappoint the bears and close above its midpoint.
  • The bears want the market to test back to the apex of the triangle (January 31st high and February 3rd low).
  • The bulls do not mind yesterday’s pullback as long as it is just a test of the February 12 breakout point of the triangle and it finds buyers on the retest.
  • If the bears are going to get a reversal down and a failed breakout above the January 24th high,  they will likely need to add to the selling pressure before they can get a clear reversal down. This means that without a clear downside breakout, the best the bears can expect is a trading range, which means sideways trading.

Emini 5-minute chart and what to expect today

  • The Emini sold off from a bear trend from the open with bar 1. Although the selloff down to bar 12 is good for the bears, it has problems. The selloff has several overlapping bars and is testing yesterday’s low, which may act as a support level.
  • The first 12 bars of the day are strong enough that the odds favor either a bear trend or a trading range day, not a bull trend day.
  • if the bulls are going to get a reversal up, they first need to stop the selling and make the market go sideways. Once the Bulls can build the buying pressure, they will have a chance of a reversal.
  • The selloff down to bar 12 has consecutive sell climaxes. This increases the odds of a couple of legs sideways to up.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart Sell Climax Then Double Bottom and Bull Channel

Al created the SP500 Emini charts.

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 Bear Trend from Open

Al created the SP500 Emini charts.

Emini end of day video review

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

EURUSD Forex market analysis

EURUSD Forex daily chart

  • The EURUSD yesterday came within three pips of the February 14th high. The rally up to February 14th was strong enough for traders to expect a 2nd leg up and test of the high.
  • While the selloff below February 14 was a good four-bar bear microchannel, which is good for the bears, it was not enough to prevent the bulls from getting an attempt at a 2nd leg up.
  • The bears are hopeful that today will form a bear reversal bar closing on its low, a double top with the February 14th high.

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.

>