The Emini had an early strong bull breakout (green) that dictated the price action for day traders today.
End of day comments about today’s Emini price action and day trading
Yesterday was a strong bear breakout candle on the daily chart. If this was a strong bear trend on the daily chart, today probably would also have been a bear trend day, providing confirmation of the breakout. Instead, today rallied.
The bears hope that this rally will be a pullback from yesterday’s bear breakout, and that the Emini then forms a bear channel on the daily chart. Because the follow-through was terrible, the odds are that the selloff is part of a trading range. This is true even of the Emini tests down to the 1900 August low.
The bulls see today as a failed breakout below the trading range of the last month and expect the Emini to rally to a new high. Until there is a strong breakout with follow-through up or down, the month long trading range will continue.
S&P500 Emini intraday market update for price action day traders
Time of update 7:24 a.m. PST.
The Emini opened within yesterday’s range and is in breakout mode for day traders. Targets above are yesterday’s low, last week’s low, and the 60 minute moving average. Targets below are yesterday’s low and the daily bull trendline.
Yesterday ended with a trading range after a strong bear breakout. The bears want trend resumption down, and the bulls want a major trend reversal up. Most trading range breakouts fail so traders will need follow-through before swing trading. Until there is a breakout with follow-through, day traders will assume that the trading range will continue, and they will buy low, sell high, and scalp.
S&P500 Emini 60 minute, daily, weekly, and monthly candle charts
The Emini had a big bear trend bar on the daily chart. It closed far below last week’s low and filled a gap on the daily chart from August. There is one more gap below. The bears need follow-through today, like a big bear trend candle on the daily chart. Since the Emini is probably in a trading range on the daily and weekly charts, there might not be good follow-through. The bulls want today’s high to go above yesterday’s low and last week’s low to close those gaps. The bears want those gaps to remain open. Yesterday’s bear breakout was so strong that the Emini will probably work lower over the next few days.
See the weekly update for a discussion of the weekly chart.
Traders can see the end of the day bar-by-bar price action report by signing up for free at BrooksPriceAction.com. I talk about the detailed Emini price action real-time throughout the day in the BrooksPriceAction.com trading room, and a 2 day free trial is available.
When I mention time, it is USA Pacific Standard Time (the Emini day session opens at 6:30 am PST, and closes at 1:15 pm PST). You can read background information on the intraday market reports on the Intraday Market Update page.
