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Emini Bulls Want Reversal Up to 6,000

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Trading Update: Wednesday November 6, 2024

S&P Emini market analysis

Emini daily chart

  • Yesterday, the Emini formed a bull reversal bar, closing on its high. The bulls are hopeful that this reversal will reach the 6,000-round number.
  • The bears tried to get a strong second leg down after the October 31st downside breakout. However, they failed, and the market reversed yesterday.
  • The Always In Bears are likely giving up and looking at the Globex chart, the market is forming a strong follow-through bar today.
  • The 6,000 round number is still a logic magnet for the market to test, and it is within reach.
  • The overnight rally has enough momentum that the odds favor a test up to the 6,000 round number over the next couple of days.
  • The bulls see the daily chart in a bull channel, which shows higher, lower, and higher highs. They are hopeful that the market will get a strong upside breakout above the October highs, leading to a measured move-up. While this is possible, it is unlikely to get a strong upside breakout above 6,000.
  • The 6,000 round number is an important round number, which will increase the odds of the market going sideways at that price level.

Emini 5-minute chart and what to expect today

  • The overnight Globex market formed a strong rally during the overnight hours. The rally was a continuation from the bull breakout during yesterday’s open of the U.S.  Session.
  • At the moment, the market is 60 points away from the 6,000 round number. This is close enough that the market may be unable to escape the gravitational pull of the round number.
  • Traders should pay attention to it as the market may have to test up to it over the next few days.
  • Traders should expect today’s open to form a trading range open due to the market opening far away from the average price.
  • The gap up is large, which increases the odds that the market may have to pull back. However, if the bears get a reversal on the open, the odds favor a trading range and not a bear trend.
  • Most traders should be patient on the open and be in a rush to trade. Traders should consider waiting for 6-12 bars before placing a trade. This will increase the odds of a trader catching the high or low of the day.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart Breakout and Channel Bull Trend

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

Al created the SP500 Emini charts.

Emini end of day video review

End of Day Emini review will begin at 4:15 PM EST. Click the link to join: https://www.youtube.com/live/42XGPVVTnUM?si=MxBXh5McENsX3ASK

EURUSD Forex market analysis

EURUSD Forex daily chart

  • The EURUSD formed a strong downside breakout yesterday evening.
  • While yesterday’s bear breakout is good for the bears, it is a climactic bar. This increases the risk of profit-taking and a reversal.
  • The bulls must undo the damage caused by the downside breakout bar. One way would be to form a big tail below the bar.
  • Another way would be for the bulls to get a large bull reversal bar tomorrow.
  • Because of yesterday’s strength, the odds are the first reversal will be minor.
  • The issue that the bears have is risk. The selloff to the October 23rd low was strong enough that the odds favored a 2nd leg down. This means that the rally over the past few weeks was likely to be minor and lead to a trading range or a bear flag, which is what happened.  

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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