Trading Update: Monday October 21, 2024
Emini end of day video review
You can also watch Joseph’s EOD Review for today on his YouTube channel.
S&P Emini market analysis
Emini daily chart
- The market is so close to the 6,000 big round number that it is within reach. It might not be able to escape the gravitational pull of the round number.
- Last Friday, the daily chart formed an inside bar. Inside bars are triangles on lower time frames, a breakout mode pattern.
- The market is in a tight bull channel on the daily chart, which increases the odds of any reversal down, becoming minor and leading to higher prices.
- There are traders interested in selling (both bulls and bears). However, because the market is so close to 6,000, they may not sell until it gets within 20 points of the magnet.
- This increases the risk of a rally up to the 5,980 price level.
- Because the round number is such an important magnet, the market may come within 20 points of it and form a reversal down.
- If the reversal down happens, the odds favor a minor reversal down and the market reaching the magnet on a reversal back up.
Emini 5-minute chart and what to expect today
- The Globex market formed a strong reversal up around 8:00 AM EST, making the market Always In Long,
- This increases the odds of the market forming a bull trend or a trading range day during the U.S. Session.
- The market formed a rally up to bar 10. However, it looked like a bull leg in what will become a trading range.
- The bulls are hopeful that the bull trend from the open will continue for the rest of the day. The rally now looks more like a bull leg in what will become a trading range.
- Because of the strong buying pressure on the 15-minute Globex chart, the downside is likely limited.
- As of bar 11, the market may have to test bar 3 low and form a double bottom.
- The bulls want a rally up to Friday’s high and to trigger the buy on the daily chart.
Friday’s Emini setups
Al created the SP500 Emini charts.
Summary of today’s S&P Emini price action
Al created the SP500 Emini charts.
EURUSD Forex end of day market analysis
EURUSD Forex daily chart
- The EURUSD is in a tight bear channel on the daily chart.
- The bulls are beginning to collect bull closes which increases the odds of the October selloff entering into a trading range. , increasing the odds of the October selloff entering
- While the October selloff is strong, the market is far from the daily moving average. This increases the odds of the market getting to the moving average over the next several bars.
- Always In Bears will consider exiting above a bull bar closing near its high. While they expect a minor reversal, the pullback could be deep.
- The September 6th breakout point low is a possible magnet for the market to test. This is due to the trapped limit order bulls who bought the September 6th low. Many of those Bulls will likely scale in lower.
- Because the October selloff is strong, it is a breakout on a higher time frame. This increases the odds that any reversal up will be minor and lead to a trading range or a bear flag.
- Overall, because the October selloff is forming consecutive sell climaxes, which the moving average is far away from, there is an increased risk of a reversal lasting two legs and testing the moving average.
EURUSD what to expect going forward
- Going forward, traders should expect the market to form more overlapping on the daily chart and a possible test up to the moving average.
- This increases the risk of multiple reversals up and down on the lower time frames.
- This means that traders should pay attention to the prior day’s extremes as the market is likely going to begin to form more overlap.
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.