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Emini Bears Want Final Flag

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Trading Update: Monday October 14, 2024

End of day video review

Brad Wolff Emini EOD Review

S&P Emini market analysis

Emini daily chart

  • The Emini formed consecutive bull bars on October 9th, which was strong enough for a second leg up. The market paused on October 10th, and the bulls managed to get a second leg up beginning last Friday.
  • The bulls are hopeful that today will lead to another bull bar and continue the second leg up from last Friday.
  • There is probably profit taking near the 5,900 round number, and the market will probably find sellers above and begin to go sideways.
  • The bears did a good job making the market go sideways around October 7th. They are hopeful that the rally above will lead to a final flag which would pull the market back into the October 7th trading range that lasted for several bars.
  • The bears see a wedge top (8/26, 9/26), and they want a reversal down today or tomorrow. The target for the bears would be the bottom of the third leg, the October 8th low.
  • Overall, the Bears want a final flag and reversal down; however, they do not have a strong signal bar yet, and the current rally up is strong. This lowers the probability of the bears getting a successful reversal without more selling pressure.

Emini 5-minute chart and what to expect today

  • The Emini formed a small gap up. However, it is large enough that the odds favor a second leg up.
  • The bulls will expect a second leg up after the gap since a gap is a breakout.
  • The bulls are hopeful that today, they will form a bull trend from the open. Today will probably not form a bull trend from the open that lasts all day. This means that there is a 60% chance that today, a trading range will form lasting several hours at some point. 
  • Bar 4 is a large buy climax bar. This increases the risk of profit-taking a market going sideways for a bar or two.

Friday’s Emini setups

SP500 Emini 5-Min Chart Strong Bull Trend From Open Then Trading Range

Al created the SP500 Emini charts.

Here are reasonable stop entry setups from Friday. 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

SP500 Emini 5-Minute Chart Bull Trend From Open

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.

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