Trading Update: Friday September 27, 2024
End of day video review
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S&P Emini market analysis
Emini daily chart
- Yesterday, the Emini formed a bear bar, closing above its midpoint. While the bar is not great for the bears, it is a bad buy signal bar above it. This increases the odds that there will be sellers above yesterday’s high.
- The market is at the 5,800 round number and is likely to continue to stall at this price level. This increases the odds that the market will fall below the 5,800-round number over the next several days.
- Today will probably disappoint the bulls and form a weak bull bar.
Emini 5-minute chart and what to expect today
- The Globex market rallied during the early morning hours and broke above the high of a trading range that lasted for most of the overnight session. The bulls are hopeful that the early morning breakout will lead to a final flag and a reversal down.
- The market is drifting along the moving average for the first 12 bars of the session. However, the rally looks like a bull leg in what will become a trading range. This increases the odds of a reversal down below the moving average and a test of the low of the day.
- The bulls are failing to keep the gaps open. This increases the odds of a reversal down.
- The bears want a reversal down a breakout below the day’s low, bar 7. However, unless the bears get a strong downside breakout, the odds favor a trading range day and not a measured move down of the opening range.
- The bulls want the tight bull channel to form open gaps and develop into a small pullback bull trend. The rally up to bar 12 looks like a bull leg in what will become a trading range.
Yesterday’s Emini setups
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.
Summary of today’s S&P Emini price action
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.
