Emini Buyers at Daily Moving Average

Trading Update: Thursday February 22, 2024

S&P Emini pre-open market analysis

Emini daily chart

• The Emini found buyers once again at the daily moving average.  The market has been in a bull trend since early November, which means that the best the bears can expect is a trading range.
• As I have said several times, the bears need to get strong closes below the moving average for traders to believe that a bear trend is possible.
• The bears are getting a frequent test of the moving average, which is an increased sign of selling pressure; it is still not enough.
• At the moment, the odds are that the daily chart will begin to go sideways for several weeks.
• Because the market is holding above the moving average, the probability is slightly higher for the bulls regarding trend resumption up.
• Overall, the bears need to do more. This means that bulls will be buying every test of the moving average, betting on a bounce.

Emini 5-minute chart and what to expect today

• Emini is up 65 points in the overnight Globex session.
• The Globex market rallied yesterday after the release of Nvidia’s earnings. The breakout was strong enough that the odds favored higher prices.
• The market is at support on the daily chart, which increases the odds of higher prices.
• The U.S. Session will likely have a large gap up on the open. This will increase the odds of the bulls getting a 2^nd leg up. However, the market may have to go sideways on the open before the bulls get a second leg up.
• Traders should expect a trading range open and for the market to get closer to the moving average.
• Because the market is climactic with yesterday’s late rally, today will probably have two hours of sideways trading beginning before the end of the second hour. There is a 75% chance of a trading range open lasting two hours, beginning before the end of the second hour.

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.

EURUSD Forex market trading strategies

EURUSD Forex daily chart

• The EURUSD broke far above the 20-period moving average today and found sellers.
• The odds favor a trading range and not the start of a bull trend.
• While the bulls have done a great job getting close above the moving average, it is not enough to make the market transition into a bull trend.
• The recent buying pressure is enough to end the bear trend, which means that the market is likely in a trading range now.
• It was reasonable to buy the February 1^st bull reversal bar and scale in lower. Part of the reason for the selling at today’s high was due to it retesting the February 1^st buy signal bar high.
• Overall, traders should expect the market to go sideways near the moving average for several bars.

Summary of today’s S&P Emini price action

Al created the SP500 Emini charts.

End of day video review

End Of Day Review will be presented in the Trading Room today. See below for details on how to sign up.

See the weekly update for a discussion of the price action on the weekly chart and for what to expect going into next week.

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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.

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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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