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Emini Low 1 Sell Signal Bar

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Trading Update: Wednesday July 24, 2024

S&P Emini pre-open market analysis

Emini daily chart

  • The Emini formed a Low 1 on the daily chart following last Friday’s Bull Bar.
  • Yesterday’s Low 1 sell signal bar is weak, which increased the chances of buyers below before the bears attempt at a second leg down.
  • The context is good for the bears for the second leg down, which means that bears selling below yesterday’s low 1 and scaling in higher will likely make money.
  • The three consecutive bear bars last week were a surprise, and the odds favor a second leg down.
  • The issue for the bears is that the daily chart is in a tight bull channel, which increases the odds of sideways trading on the daily chart. This means that the bears may need to form a lower-high major trend reversal before they get the second leg down.
  • Update: The bears are getting a gap down and triggering the Low 1 sell signal bar during the Globex session. This is a sign of strength by the bears.

Emini 5-minute chart and what to expect today

  • The Emini formed a bear trend during the overnight Globex hours and created a large gap down on the open of the U.S. Session.
  • The bears created a bear trend from the open with the first 7 bars of the day. This is a sign of strong selling pressure and increases the chances of a bear-trend day.
  • As of bar 7, the market is very far away from the moving average, which is the average price. This increases the odds that the market will need to go sideways in order for the market to get closer to the moving average.  
  • The bears are hopeful that today will form a strong entry bar for yesterday’s low 1 sell signal bar on the daily chart.
  • The market is Always In Short as of bar 7, and the bears the bulls can expect is sideways.
  • The bulls need to first stop the selling pressure by making the market go sideways. Next, they will need to create some form of a major trend reversal if they are going to have a chance at a reversal up.
  • This means that the first reversal up will likely be minor and lead to a trading range.

Yesterday’s Emini setups

SP500 Emini 5-Minute Chart Wedge Top 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.

EURUSD Forex market trading strategies

EURUSD Forex daily chart

  • The EURUSD formed another bear bar following Tuesday’s downside breakout below the weak High 1 buy signal bar.
  • The recent selloff has formed a 7-bar bear micro channel, which increases the odds of sellers above and a second leg down.
  • The rally up to the July high is strong enough that the odds favor a second leg up. This increases the odds of a test back to the July high.
  • The bears selloff this weak is strong enough that the first reversal up will probably fail. This increases the odds of the market needing to go sideways before the bulls get a test of the July high.
  • The bears are hopeful that the July rally is a failed breakout of the trading range that will lead to an endless pullback.
  • Overall, the selloff over the past week is strong enough to make the market go sideways, but it is not Always In Short. A trading range is more likely than a strong bear breakout.

Summary of today’s S&P Emini price action

SP500 Emini 5-Minute Chart Small Pullback Bear Trend From The 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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