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Emini Sellers Likely above Yesterday’s High

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Trading Update: Friday August 9, 2024

S&P Emini pre-open market analysis

Emini daily chart

  • The Emini formed a bull reversal bar, closing on its high after Wednesday’s low 1 Short. Yesterday was a strong reversal up, the odds favor sellers above yesterday’s high.
  • Yesterday’s bull reversal bar is a sign of strong buying. The risk for the bulls is that there are sellers above, and today will be a bear reversal bar, trapping the bulls into buying high.
  • The bulls are hopeful that the buying pressure is strong enough to lead to an upside breakout and test up to the 5,500-round number.
  • However, the market may have to test down to near the 5,200 round number and bottom of Wednesday’s Low 1 sell signal bar.
  • The buying pressure this week is disappointing for the bears and increases the odds of sideways trading.
  • The odds favor a trading range on the daily chart and not a bear trend. This increases the risk of the market getting a deep pullback to near the 5,500-round number before the bears down to the 5,000-round number.
  • Overall, traders should expect the market to continue to go sideways to up over the next couple of weeks.

Emini 5-minute chart and what to expect today

  • Today has gone sideways within yesterday’s trading range for the first 12 bars of the day. This increases the odds that there will be a lot of trading range price action today.
  • The first 12 bars of the day are inside an expanding triangle from yesterday. This means traders should be cautious and consider waiting for a clear breakout with follow-through, breaking out of the expanding triangle.
  • Today is Friday, which means weekly support and resistance are important.
  • Today has the potential to get a surprise breakout late in the day as traders decide on the close of the weekly chart.
  • If today is going to become a strong trend day, there will be plenty of time to enter. 
  • Trends take several bars to form; when they form, they take many bars of sideways price action to reverse.
  • Traders should assume that today will remain in a trading range for most of the day until there is a clear successful breakout.
  • The bulls formed a rally up to the bar 20 high; however, they are still within the overall expanding triangle from yesterday.
  • This increases the risk that the rally up to bar 20 will become a 2nd leg trap and test back down to bar 14 low (bottom of the 2nd leg).
  • The bulls want the pullback from bar 20 to stabilize and create a 2nd entry buy.
  • While the bulls have done a good job with the rally up to bar 20, it is still within the overall trading range and at yesterday’s high. This will make bulls hesitate to buy until there is a stronger upside breakout.
  • The bulls need to keep the breakout point gap above the bar 9 high open. As of bar 23, it looks like the gap is going to close. This further increases the risk that the rally to bar 20 is a bull leg in a TR.
  • Bar 24 is a bull give up bar. This increases risk of a test down to the bar 14 low.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart Bull Trend From Open Then Measured Move Up

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 is continuing to go sideways today after yesterday outside down reversal bar.
  • The bears are creating a disappointing pullback following the August 5th breakout above the July 16th high.

Summary of today’s S&P Emini price action

SP500 Emini 5-Minute Chart Bull Trending Trading Range Day

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.

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.

  • Thank you for posting today’s summary chart. Can you tell more about what is the idea behind marking 14 as buy the close? The situation is murky in the least and it sounds too bold to mark it as buy the close. It comes after the WT9, REV, bear 10 and 13. Then 14 can be seen both as a failure of bears FT, and a failure of bulls BO too, especially when closing below MA after reversal from MA. Yet followed by 15 that signifies failure of MA BO.

    • 14 is a signal bar for a long that was triggered on bar 15 but not BTC. It’s not until bars 16 & 17 in the colored box that the market becomes AIL/BTC.

      • Hi Andrew, thanks for the response. I have been curious which part of price action course would call the 14 a signal bar. In my view, the only reason I could possibly see is that 14 is H2 in PB. But I have a difficulty to see bars 10-13 as PB, since there is WT making them rather a reversal in my eyes. Or is there another reason than H2?

        • I also don’t see bar 14 as a good signal bar but perhaps Al saw it as such because it is a HH in a bull trend that is a continuation from the prior day?

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