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Emini Likely to Test Friday’s Inside Bar High

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Trading Update: Tuesday December 19, 2023

S&P Emini pre-open market analysis

Emini daily chart

  • Yesterday, the Emini rallied above last Friday’s inside bar. Inside bars are triangles on smaller time frames, and can often act as final flags late in a trend.
  • Trades should expect a retest of last Friday’s inside bar high (4,779.25) within the next day or two.
  • The market has been away from the moving average for several bars. Every day that goes by without touching the moving average on the daily chart increases the odds of a reversal back to it.
  • Eventually, buyers will not be willing to buy this far away from the moving average. This will force the market to go lower to establish a new price where traders will buy.
  • The odds are against a strong bear trend. However, the odds favor a trading range and sideways to down trading.
  • Over the next couple of days, traders should expect the bulls to become disappointed and for the market to test down into the December 13th bull breakout range.

Emini 5-minute chart and what to expect today

  • Emini is up 5 points in the overnight Globex session.
  • Today will probably have a lot of trading range price action and disappoint the bulls.
  • Traders should pay attention to the day’s open and last Friday’s high (4,779.25).
  • As always, most traders should consider not trading during the first 6 – 12 bars, unless they are comfortable trading with wide stops and making quick decisions. It is common to have several failed breakout attempts on the open.
  • Most traders should try to catch the opening swing that will often begin before the end of the second hour. It often will start after the formation of a double top/bottom or a wedge top/bottom.
  • Lastly, traders should be patient and expect a trading range open. There is only a 20% chance of a trend from the open.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart Small Pullback Bull Trend From The Open

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 rallied up to the December 14th high close.
  • Bulls want a second leg up and a breakout above the December high.
  • The bears want the market to form a double top, and test down to the December low.
  • Because of the past two days closing with bull bars, the odds are the downside is limited.
  • There are trapped bears who sold above the December 18th high. Those bears will probably use and pullback to exit losing shorts.
  • Overall, the market will probably continue to go sideways over the next couple of days.

Summary of today’s S&P Emini price action

SP500 Emini 5-Min Chart Bull Trend From The Open Then Trading Range

Al created the SP500 Emini charts.

End of day video review

Live stream videos to follow Monday, Wednesday and Friday (subject to change).

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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