Emini Sell Zone of a Tight Trading Range

Trading Update: Wednesday October 9, 2024

End of day video review

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You can also watch Joseph’s EOD Review for today on his YouTube channel.

S&P Emini market analysis

Emini daily chart

• The Emini is testing the upper 1/3^rd of the 12-bar tight trading range on the daily chart. This is the sell zone of the trading range, which increases the odds of sellers above.
• This is an area where sellers will likely overwhelm the market.
• Today will probably form a disappointment bar on the daily chart and not be a second consecutive strong bull bar.
• Traders should pay attention to yesterday’s high as it will likely be an important magnet today.
• The bars want the market to form a double top with the September 26^th high. Next, they want a break below the September 2^nd neckline and for the market to fall for a measured move down to the 5,600-round number.

Emini 5-minute chart and what to expect today

• The Emini opened at yesterday’s close with little to no gap.
• The market has rallied in a tight bull channel for the first 9 bars of the day.
• The bulls hope this starts a small pullback bull trend.
• The Bears want the market to form a major trend reversal, and they are hopeful that today’s rally will form an early high of the day.
• Today, will probably have a difficult time closing above yesterday’s high. This means that yesterday’s high is likely to act as a resistance level, and there will probably be sellers above it.
• The bears need to halt today’s rally. Next, they need to increase the selling pressure by collecting bear bars closing below their midpoints.
• As of bar 12, the bulls are getting too much buying pressure, which increases the odds that today will not become a bear trend day.
• The bears are failing to get selling pressure, which is what led to the upside breakout on bar 18.
• The market is in a small pullback bull trend. This increases the odds of buyers below any pullback.

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.

Summary of today’s S&P Emini price action

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.

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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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