Trading Update: Tuesday October 8, 2024
End of day video review
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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 bear bar yesterday after last Friday’s bull doji bar.
- Last Friday, there was a weak high 1 buy signal bar in the sell zone of a tight trading range on the daily chart. This made the context bad for the bulls looking to buy after last Friday.
- Although yesterday was a bear bar closing near its low, the tight trading range forced the bears to sell too low, which is why the market gapped up during today’s open.
- The probabilities for the bulls and the bears are becoming neutral on the daily chart. This increases the odds that the daily chart is going to continue to go sideways for the next several bars.
Emini 5-minute chart and what to expect today
- The Emini gapped up on the open and formed a second leg up to bar 8.
- A gap on the open should be thought of as a breakout. Since breakouts typically get second legs, this means that the odds favored a second leg up on the open.
- The bulls are hopeful that the market is forming a trend from the open bull trend.
- Because the market is far from the moving average, the odds favor a retest of the moving average soon.
- This means that the rally up to bar 8 is probably going to form a trading range sometime soon
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.
