Curso de Trading de Brooks

Aprenda a operar con la acción del precio de forma consistente

 

More results...

Emini Reversal up from Test of 5,500 Round Number

By

Trading Update: Tuesday July 2, 2024

S&P Emini pre-open market analysis

Emini daily chart

  • The market is reversing up during the early morning hours after a test of the 5,500-round number
  • Yesterday, a bad follow-through bar for the bears was formed following last Friday’s outside down bar.
  • Yesterday’s bar is a weak stop entry buy, which increases the odds of sellers above and a second leg down. This is why the overnight session sold off.
  • Even if the market gets a strong bull reversal today, the odds will still favor a test below the 5,500 round number.
  • The Globex market tested the round number within 3 points. However, it did not fall below it.
  • The moving average is also not far below, which increases the odds that the market will reach it as well.
  • This means that even if the bulls get a reversal up above the June high, the odds will favor a reversal down to the moving average.
  • It is important to remember that the market is in a tight bull channel, and a trading range is more likely than the start of a bear trend. This means that bulls will look to buy pullbacks and scale in lower, which will limit the downside.

Emini 5-minute chart and what to expect today

  • The Globex market sold off overnight hours and recently tested within 10 points of the 5,500 round number.
  • The bulls are hopeful that today will form an early low of the day and become a strong bull trend day.
  • Because of the support and strong reversal up just before the open, if today is going to be a trend day, it will probably be a bull trend day.
  • As always, traders should expect today to have a lot of trading range price action on the open.
  • Most traders should wait for 6-12 bars before placing a trade. By waiting, a trader gains clarity on the day structure and a better chance of catching the high or low of the day.
  • By bar 6, there is often a 50% chance that a trader has seen either the high or low of the day.

Yesterday’s Emini setups

SP500 Emini 5-Minute Wedge Bottom 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

  • The EURUSD formed a bear doji bar yesterday with a tail below the bar.
  • The odds favor buyers below yesterday’s low since it is a bad sell signal bar.
  • The bears allowed too much buying pressure during the June selloff, and now the market is forming a trading range within the bottom of an overall trading range. This increases the odds of the bears getting a second leg up.

Summary of today’s S&P Emini price action

SP500 Emini 5-Minute Chart Small Pullback Bull Trend From Open

Al created the SP500 Emini charts.

End of day video review

End Of Day Review will be presented in the Trading Room today. See below for details on how to sign up.

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.

>