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Emini Strong Bull Breakout

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Trading Update: Wednesday November 15, 2023

S&P Emini pre-open market analysis

Emini daily chart

  • The Emini formed a strong bull breakout yesterday, following the release of the CPI report.
  • Yesterday’s breakout bar is climactic, which increases the odds of profit-taking and a pullback lasting 1-3 bars.
  • As I said over the past few weeks, the odds favored a 2nd leg up after the rally that began on October 27th.  
  • The market will probably get to the September 1st high, which is the start of the bear channel that ended at the October low.
  • The rally up from the October low is tight. If the bears will get a reversal of the current rally, they must halt the buying pressure first. Until then, the odds will favor sideways to up.
  • Overall, traders expect higher prices and a test of the September 1st high. However, the market may have to pull back and go sideways for a few days first.

Emini 5-minute chart and what to expect today

  • Emini is up 9 points in the overnight Globex session.
  • The has been going sideways to up in a bull channel for most of the overnight session.
  • The bears recently formed a downside breakout, and the odds will favor a second leg down, which is, as of 9:15 AM EST, the bears are attempting to get.
  • Traders should expect the open to have a lot of trading range price action. Most traders should consider not trading for the first 6-12 bars unless they are comfortable with wide stops and limit order trades.
  • Most traders should focus on catching the opening swing that often begins before the end of the second hour. It is common for the opening swing to begin after the formation of a double top/bottom or a wedge top/bottom. 
  • Traders should pay attention to yesterday’s close as it will likely be an important magnet.

Emini intraday market update

  • Emini gapped up and formed an opening reversal up at the moving average.
  • The bulls ended up getting a second leg up to bar 17. However, the market formed a parabolic wedge top.
  • Because yesterday was climactic, the odds are against another strong bull trend day.
  • This means that traders should continue to pay attention to the open of the day as the market will likely close near it.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart Bull Trend From The Open and 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

EURUSD Daily: Bulls Want Follow-through
  • The EURUSD yesterday formed a strong bull breakout bar in the early morning.
  • The bulls hope today will lead to a strong follow-through bar.
  • More likely, the market will go sideways for a bar or two since yesterday’s bar was climactic.
  • The bears are hopeful that yesterday’s is a second leg trap. More likely, the best the bears will be able to get is sideways and a trading range.

Summary of today’s S&P Emini price action

SP500 Emini 5-Min Chart Wedge Top and Then Trading Range

Al created the SP500 Emini charts.

End of day video review

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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