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Emini Breakout above All Time High

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Trading Update: Thursday October 10, 2024

End of day video review

PriceActionRose-EOD-Review-241010

Follow PriceActionRose’s YouTube channel for more Al Brooks price action analysis.

S&P Emini market analysis

Emini daily chart

  • The Emini formed a breakout above the September time high yesterday. However, there are likely sellers above it.   
  • While this is good for the bulls, it is more likely that yesterday was a bull trend bar in a trading range, which is why today gapped down.
  • There will be disappointed bulls interested in taking profits above the September high and bears likely interested in establishing short positions.
  • The market has spent several bars above the moving average, which is a sign of strong buying. This is good for the bulls and will likely limit the downside until bears can get more selling pressure.
  • The bears need to get a reversal down and a series of bear bars closing below the moving average. Without it, the odds favor the downside being limited.

Emini 5-minute chart and what to expect today

  • The Emini gapped down today and formed four consecutive bear bars on the open. However, the bars had a lot of overlap, which increased the odds of an opening reversal, which is what happened.
  • The bulls are trying to get a reversal up and test yesterday’s high, but the rally up from the bar 5 low is likely to become a bull leg in what will become a trading range.
  • Today will likely disappoint the bulls and not form another strong bull trend day. This means that yesterday’s close and high are important magnets that will likely be resistance.
  • Traders should expect the rally up to bar 9 to lead to a trading range and not a strong bull trend day. This means that the bulls buying will likely be disappointed soon.

Yesterday’s Emini setups

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

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

SP500 Emini 5-Min Chart Bear Trap Then Bull Channel and Trading Range

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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