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Emini Weak High 1 Buy Signal Bar

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Trading Update: Monday June 17, 2024

S&P Emini pre-open market analysis

Emini daily chart

  • The daily chart has two doji bars after last Wednesday’s upside breakout.
  • Last Friday, formed a weak high 1 buy signal bar was formed on the daily chart. However, the context is bad for the bulls, and the signal bar is a doji. This increases the odds of sellers above last Friday’s high and the market getting a deeper pullback.
  • The bears are hopeful that the rally up from the May 31st low is a parabolic wedge that will lead to two legs sideways to down.
  • The rally up from the May 13th low is likely a bull leg in what will become a trading range. This increases the risk that the market will test back down to the May 31st low.
  • The bears need to create more selling pressure if they are going to get a strong downside breakout.
  • Without more selling pressure, the market will likely continue to go sideways and get closer to the moving average.

Emini 5-minute chart and what to expect today

  • Emini is down 5 points in the overnight Globex session.
  • The Globex market has gone sideways on the 15-minute chart for more of the overnight session. The Bears tried to get a downside breakout a couple of hours before the U.S. Open. However, they failed.
  • Traders should expect the open of the U.S. Session to have a lot of trading range price action. This means that most traders should consider waiting for 6-12 bars before placing a trade unless they are able to make quick decisions.
  • Most traders should try and catch the opening swing that often begins before the end of the second hour, after the formation of a double top/bottom, or a wedge top/bottom.
  • Traders should pay attention to yesterday’s high as the market may try and test it due to it being a buy signal bar on the daily chart.

Friday’s Emini setups

SP500 Emini 5-Min Chart Wedge Bottom and Then Bull Channel

Al created the SP500 Emini charts.

Here are reasonable stop entry setups from Friday. 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.

Summary of today’s S&P Emini price action

SP500 Emini 5-Min Chart Bear Trap and Then Small Pullback Bull Trend

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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