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Emini Sellers Likely Above

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Trading Update: Thursday June 27, 2024

S&P Emini pre-open market analysis

Emini daily chart

  • The Emini formed a bull follow-through bar after Tuesday’s second entry buy setup.
  • The bulls are hopeful that yesterday’s follow-through buying is strong enough to increase the odds of a second leg up and a test of the June high. More likely, the bulls will be disappointed by the follow-through buying and the bears will get a second leg down.
  • The daily chart now has six consecutive overlapping bars. This will increase the odds of sideways trading, making the probability closer to 50% for both the bulls and the bears.
  • The market has been far from the moving average for several bars on the daily chart. Every bar added to the sideways trading will drag the moving average closer to the current price.
  • The odds are that the Emini will touch the moving average soon. If the daily chart continues to go sideways, it will accomplish the goal of reaching the moving average.
  • The channel up to the June high is tight. This will limit the downside for the bears unless they can develop more selling pressure.
  • The bears have done a good job by making the market go sideways. Next, they need to create more selling pressure buy forming bear bars closing on their lows.
  • Overall, the daily chart is getting climatic and far from the moving average. This increases the risk of sellers above and a second leg down to the average price, the moving average.

Emini 5-minute chart and what to expect today

  • The Globex market sold off yesterday evening and has rallied since the early morning hours.
  • The bulls continued the rally into the open of the U. S. Session. While the rally is in a tight bull channel, it is developing overlapping bars. This increases the odds of sideways trading today.
  • Bars 1-2 on the open were strong enough to increase the odds of today being either a bull trend day or a trading range day but not a bear trend day.
  • Because of the selloff on bars 4-5, the odds are that today will have a lot of trading range price action.
  • Because of the big up/big down on the open, traders should be prepared for the market to form a possible triangle and go sideways for several hours before the market decides on the breakout direction.

Yesterday’s Emini setups

SP500 Emini 5-Minute Lower Low Double Bottom 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 a bear follow-through bar after the June 25th bear bar. However, the odds favored buyers below.
  • The bears have allowed too much buying pressure to form since the selloff began in early June.
  • This increases the odds of a rally lasting a couple of legs and the downside being limited.
  • Even if today closes below its midpoint, the odds favor buyers below.
  • The bears have formed a weak bear channel over the past several bars. However, most of the channels have had a lot of overlap, and the bulls have been making money. This increases the odds of the market reaching the top of the channel, which is the June 18th high.

Summary of today’s S&P Emini price action

SP500 Emini 5-Minute HH Double Top Then Trading Range

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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