Trading Update: Monday September 23, 2024
End of day video review
S&P Emini market analysis
Emini daily chart
- Last Friday, the Emini formed a weak High 1 buy signal bar. This signal bar is a weak doji bar, which increases the odds of sellers above and more sideways trading.
- Last week, the bulls managed to break above the August highs, which was a sign of strong buying.
- This week will probably close below the open of the week and disappoint the bulls. The market is high in a trading range on the daily chart and has formed a 2nd leg up after the rally up to the August high.
- The selloff down to the September low is strong enough that the market will likely retest it. Over the next several days.
- Traders should expect sellers above Friday’s high 1 buy signal bar and for today to not form a strong entry bar. If today does form a strong entry bar, the odds will favor a retest of last Friday’s high within the next two bars.
- Overall, the bulls will probably be disappointed today, and the market will find sellers above last Friday’s high 1 buy signal bar.
Emini 5-minute chart and what to expect today
- The Globex market has been in a trading range for most of the overnight session. This increased the odds of the U.S. Session open having a lot of trading range price action as well.
- The first 3 bars of the day have had a lot of overlap. This is a warning that the open will probably not form a trend up or down.
- Most traders should wait 6-12 bars before placing a trade unless they are quick to make decisions.
- The odds favor an opening swing developing before the end of the second hour, after the formation of a double top/bottom or a wedge top/bottom. Traders can wait for one of the above-mentioned patterns to form before placing a trade.
- The most important thing on the open is to be patient and not in a rush.
- Traders should pay attention to last Friday’s high as the market will probably try to break above it.
Friday’s Emini setups
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
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.
