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Emini Buyers at May 8th Buy Signal bar

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Trading Update: Tuesday May 14, 2024

S&P Emini pre-open market analysis

Emini daily chart

  • The Emini reached the May 8th high during the Globex 8:30 AM EST report bar and found buyers.
  • Yesterday formed a bear inside bar. This is a sign of disappointment by the bulls and increases the odds that the market will begin to go sideways soon.
  • The bears are hopeful that yesterday’s inside bar will act as a final flag and lead to a reversal down.
  • Even if the bears get a reversal down, there will likely be buyers not far below, such as the high of May 8th, which is a High 1 buy signal bar.
  • I mentioned last week that the market would likely test the May 8th high 1 buy signal bar due to trapped traders. High 1 buy signal bars late in a trend often have a brief pullback, followed by trend resumption. This means that sellers are usually above High 1 setups late in rallies. Here, the bears got trapped selling above the May 8th high 1, and the market was likely to allow the trapped bears out. The bulls know this and will use the retest to establish long positions.
  • The bulls want to reach the 5,300 round number, which is near the measured move of the bull breakout of the bear flag (April 19th low to the April 29th high).

Emini 5-minute chart and what to expect today

  • The Globex market sold off during the 8:30 AM EDT report and found support at the May 8th high 1 buy signal bar high.
  • The bulls reversed the market and reached the high of the 8:30 AM EST report bar right before the open of the U.S. Session.
  • Traders should expect today to have a lot of trading range price action on the open.
  • In general, there is an 80% chance of a trading range open, and only a 20% chance of a trend from the open.
  • Most traders should expect a trading range open, and consider not trading for the first 6-12 bars, unless they are able to make quick decisions. This is because most breakouts on the open are minor and lead to reversals.
  • There is an 80% chance of a swing trade on the open that often begins before the end of the second hour. It is common for the market to form a double top/bottom or a wedge top/bottom before the opening swing trade begins.
  • This means that a trader can usually wait for the market to form one of the above-mentioned patterns to form and enter on a stop entry to try and catch the opening swing.

Yesterday’s Emini setups

SP500 Emini 5-Min Chart Bear Trend From Open Midday Reversal 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.

Summary of today’s S&P Emini price action

SP500 Emini 5-Min Chart Wedge Top Failed Then Trading Range

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.

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