Trading Update: Monday October 7, 2024
S&P Emini market analysis
Emini daily chart
- Last Friday formed a doji bar closing in the upper 1/3rd of the tight trading range on the daily chart. This is a weak High 1 buy signal bar, which increases the odds that there are sellers above last Friday’s high, and the bulls will fail to get an upside breakout.
- The daily chart is building the selling pressure, which increases the odds of a possible downside breakout.
- The bears want the market to form a double top with the September high. Next, they want a break below the October 2nd neckline and a measured move down.
- Traders should assume that the tight trading range is going to continue until there is a clear, strong breakout with follow-through.
- Tight trading ranges can last a long time, and it is easy to get trapped while betting on a breakout.
Emini 5-minute chart and what to expect today
- The Emini gapped down on the open and formed a tight trading range with the first three bars of the day.
- The bears are trying to get a downside breakout with bar 5 and a measured move down of the opening range.
- Because the market gapped down, the odds for a second leg are down.
- In general, most traders should not be in a rush on the open and consider waiting for 6-12 bars before placing a trade. This is because failed breakouts on the open are common, and the market often goes sideways in the first hour.
Friday’s Emini setups
Al created the SP500 Emini charts.
EURUSD Forex market trading strategies
EURUSD Forex daily chart
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Summary of today’s S&P Emini price action
Al created the SP500 Emini charts.
End of day video review
Periodic end of day review videos will be moved to top of page when done.
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.