Emini Bulls Getting Follow-through after High 1

Trading Update: Friday February 16, 2024

S&P Emini pre-open market analysis

Emini daily chart

• The Bulls are getting follow-through buying after the February 14^th High 1 buy signal bar. This increases the odds of the bulls getting a small second leg up.
• While the bulls are hopeful that they have successfully trapped the bears and the market will get a strong upside breakout above February 12^th, more likely, the market will go sideways. This means the odds favor the bears getting a small second leg down after the February 13^th bear breakout.
• The Emini formed a strong downside breakout on February 13^th however the bears failed to get strong follow-through selling.
• This was expected since the market is in a bull trend, and a trading range is more likely than a bear trend.
• The bears need to get strong closes below the moving average as a sign of strong selling pressure. Without it, the daily chart is more likely to go sideways.
• Overall, traders should expect a trading range to form on the daily chart, not a strong bear trend.

Emini 5-minute chart and what to expect today

• Emini is down 6 points in the overnight Globex session.
• The Globex market formed a downside breakout recently during the 8:30 AM EST report.
• The bears hope the downside breakout will lead to a second leg down during the U.S. Session.
• As always, traders should expect the open to have a lot of trading range price action, leading to sideways trading.
• There is an 80% chance that the market will form a trading range open and only a 20% chance of a trend from the open up or down.
• Most traders should consider not trading for the first 6-12 bars unless they are able to trade with limited orders and make quick decisions.
• Most traders should try and catch the opening swing that often begins before the end of the second hour, after the formation of a double top/bottom, or a wedge top/bottom.
• Today is Friday, so weekly support and resistance is important. The open is at 5,043, a reasonable magnet for traders to pay attention to.
• Traders should be mindful of a surprise breakout late in the day, as traders decide over the close of the weekly chart.

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 yesterday formed a strong entry bar following the bull reversal bar on February 14^th.
• Today, retested the February 14^th breakout point and bounced. T
• The bears are hopeful that any rally up will lead to another lower high below the February 12^th high and a reversal down.
• At the moment, the EURUSD will probably test closer to the moving average and test the February 12^th high.

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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