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Emini High 1 Buy Signal Bar at Resistance

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Trading Update: Friday December 1, 2023

S&P Emini pre-open market analysis

Emini daily chart

  • Yesterday, a High 1 buy signal bar was formed, closing near its high at resistance. High 1 buy signals typically lead to minor pullbacks and trend resumption.
  • The Emini formed a parabolic wedge top with November 29th as the third leg up.
  • However, High 1 buy signals in the third leg late in a rally often fail.
  • The risk the bulls face is sellers above yesterday’s High 1 signal bar and a second leg down following the November 29th wedge top sell signal bar.
  • The market is far from the moving average, and many bulls will hesitate to buy this far from the average price, especially when the market is developing a lot of sideways trading.
  • Traders are happy to pay a premium (above the average price) when the momentum is strong. However, as the momentum weakens, traders prefer to buy value, which means looking to buy closer to the moving average.
  • The market will probably reach the moving average soon. It can do so by forming a downside breakout and testing it quickly or going sideways and dragging the average price up to the current price level.
  • Lastly, the market has formed a perfect double top with September 1st and the November 29th high.  The odds are that the market will go at least 1 tick above the September 1st high. It is possible that today has an upside breakout above the November 29th high, fails, and reverses back down. That would also lead to a failed High 1.

Emini 5-minute chart and what to expect today

  • Emini is down 11 points in the overnight Globex session.
  • The Emini rallied overnight, forming a second leg up following the late upside breakout at the end of yesterday’s session.
  • The morning hours sold off and is currently testing the middle of the Globex range over the past couple of days.
  • Traders should pay attention to yesterday’s high as it will likely be an important magnet that will get tested due to it being a High 1 buy signal bar.
  • As always, traders should expect the market to have a lot of trading range price action on the open. Most traders should wait 6 – 12 bars before placing a trade unless they can make quick decisions. This is because there is an 80% chance of some trading range open developing. There is only a 20% chance of a trend from the open.
  • Most traders should try to catch the opening swing that often begins before the end of the second hour. It is common for the opening swing to begin after the formation of a double top/bottom or a wedge top/bottom. A trader can often wait for one of the abovementioned patterns before placing a trade.  
  • Lastly, today is Friday, meaning weekly support and resistance are important. The open of the week is at 4,561.5 and will probably be an important magnet going into the close.
  • Traders should also be mindful of a possible surprise breakout late in the day as traders decide to close the weekly chart.

Yesterday’s Emini setups

SP500 Emini 5 Min Chart Bear Channel Then Lower MTR

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 wedge top on November 29th and a strong bear entry bar yesterday.
  • Today reached the moving average and the bottom of the bull channel that began on November 17th.
  • The selloff that began on November 29th is strong enough for a second leg down. However, the market is at important support, which increases the odds of a deep pullback and sideways trading.

Summary of today’s S&P Emini price action

SP500 Emini 5 Min Chart Double Bottom Rally 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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