Trading Update: Wednesday September 25, 2024
End of day video review
See Price Action Rose’s YouTube channel for another End of day review.
S&P Emini market analysis
Emini daily chart
- The Emini formed a bull outside up bar yesterday just under the 5,800 round number. There will likely be profit taking by the bulls near the 5,800 round number.
- The market will probably reach the round number sometime today. Because the round number is a likely resistance level, the risk that there will be sellers above it increases.
- However, the market could go 10 points above 5,800 before the sellers come in.
- The daily chart is forming a lot of overlapping bars near the all-time high and the 5,800-round number. This increases the odds that the daily chart will probably get a pullback soon.
Emini 5-minute chart and what to expect today
- The Emini has gone sideways for the first 9 bars of the day. This increases the odds that there will be a lot of trading range price action today.
- Bar 8 came within 5 ticks of the 5,800 round number and pulled back. This is a warning that the market may not go far above the 5,800 round number and that there are probably sellers above it.
- Today will probably try and close below the open of the day and disappoint the bulls on the daily chart.
- I mentioned that today has the potential to begin a reversal below the open of the week. Last week, the weekly chart formed a weak follow-through bar after forming a second leg up from the August rally.
- Bulls are hopeful for this week to have follow-through momentum bulls, and they will exit when they sense there is a lack of momentum this week. Monday and Tuesday make up 40% of the formation of the weekly chart, and so far, there is no strong follow-through buying. This increases the risk of a reversal down below the open for the week, which might happen today.
- The market may have to go at least 1 tick above the 5,800 round number before the bears can get an attempt at a reversal down.
- The selloff down to bar 12 is a reminder that the upside is likely limited, and today will probably be a trading range day.
Yesterday’s Emini setups
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
Al created the SP500 Emini charts.
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.
