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Emini Daily Chart Transitioning into Trading Range

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Trading Update: Tuesday June 25, 2024

S&P Emini pre-open market analysis

Emini daily chart

  • The Emini Daily chart went outside down yesterday, increasing the odds of sideways trading. The are adding the selling pressure which increases the of the daily chart transitioning into a trading range.
  • The bears want a downside breakout and test of the test of the 5,500 round number and the 20-day moving average.
  • The bull’s hope today will lead to a reversal from yesterday’s outside down day, creating a second entry buy on the daily chart.
  • The bear wants the tight trading range to continue, increasing the odds of lower prices.
  • The bears need to continue to make the market go sideways on the daily chart to confirm that the market is now in a trading range.
  • If the bears can transition the market into a trading range, they will have a better shot at getting down to the May 31st major higher low.
  • As long as the rally is making higher lows and higher highs, traders will see it as still in a bull trend. If the bears can drive the market below the most recent major higher low, it will be in a trading range, increasing the risk of sideways trading.

Emini 5-minute chart and what to expect today

  • The overnight session went sideways for a lot of bars.
  • This increases the odds that today will have a lot of trading range price action on the open.
  • If the open has a lot of overlapping bars, there is a greater risk of sideways trading.
  • Traders should consider waiting patiently for a clear breakout with follow-through unless they are able to trade with limit orders and use wide stops.
  • The market may try to test yesterday’s low, and if it does, there are probably buyers not far below it.

Emini Intra-Day Update

  • The Emini reversed up from a strong bull bar on bar 7 after testing near yesterday’s close.
  • The bulls are hopeful that bar 7 will become the day’s low.
  • As strong as bar 7 is, it is a big bull bar in the middle of an overall trading range. This increases the odds that the market will go sideways and continue to have a lot of trading range price action.
  • The bears formed a downside breakout around bar 35 that was strong enough for lower prices. The bears ended up getting a test down to near yesterday’s low.
  • The Bulls developed strong buying pressure down to bar 44 low.
  • The odds favored the selloff to bar 43 being a bear leg in what would become a trading range, which is why the bull breakout on bars 44 and 45 happened.
  • At bar 53, the Bulls could reach the day’s open.  The bulls hope that the rally to the day’s open is strong enough for higher prices.
  • While the market is Always In Long on bar 55 and in a tight bull channel, the four-bar tight trading range increases the odds of a pullback to the moving average.
  • Because the market is in a trading range, bulls are hesitant to buy this high up in a trading range day.

Yesterday’s Emini setups

SP500 Emini 5-Minute Buy Climax and Then Bear Channel

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 strong bull bar yesterday; however, it is at the top of a tight trading range. This increased the odds of bad follow-through buying today.
  • The rally yesterday was strong enough that the odds favor a 2nd leg up. This increases the odds of buyers below, scaling in lower.
  • The daily chart will likely test the daily moving average soon. The bears have allowed too much buying pressure. This increases the odds of buyers not far below and the market reversing back to fair prices and the moving average.
  • Today closed with a big tail below the b

Summary of today’s S&P Emini price action

SP500 Emini 5-Minute Wedge Top and Then Midday Reversal Up

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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