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Emini Weak Inside Bar

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Trading Update: Monday November 4, 2024

S&P Emini market analysis

Emini daily chart

  • The Emini formed a weak inside bar last Thursday after Friday’s strong bear breakout below the bull flag (October 17th high to the October 23rd low).  
  • Even though last Friday is not a strong sell signal bar, the odds favor a 2nd leg down and a test of last Thursday’s close.
  • The bulls are hopeful that today will form a double bottom with last Thursday’s bear breakout, which will lead to a reversal.
  • Low 1 setups often lead to buyers below. Therefore, they typically pull back and get retested later, which is what might happen here.
  • Overall, the odds favor a second leg down and a test of the 5,677 measured move target based on the bear breakout below the bull flag mentioned above.

Emini 5-minute chart and what to expect today

  • The Globex market went sideways for most of the overnight and early morning hours.
  • This increases the odds that today, there will be a lot of trading range price action.
  • Bars 1-2 formed a sell climax late in a selloff with Friday. This increased the odds that the market would get a reversal up and test the bar 1 high, the top of the most recent sell climax.
  • The gap down was very small, increasing the odds of opening a trading range.
  • As of bar 8, the bulls have had two legs up, failing to get a strong breakout. The bears want a test back down to bar 2 close to relieve the trapped bears.
  • Traders should pay attention to yesterday’s low. The bears want follow-through selling below it, and the bulls want to prevent the follow-through from forming by closing above it.
  • The bulls are hopeful that the market is forming a bull trend from the open. While this is possible, the bulls need to do more by creating more bull bars and open gaps. Without it, a leg up in a trading range is more likely.

Friday’s Emini setups

SP500 Emini 5-Min Chart Parabolic Wedge Buy Climax Then Reversal Down

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.

Emini end of day video review

Periodic end of day review videos will be moved to top of page when done.

EURUSD Forex market analysis

EURUSD Forex daily chart

  • The EURUSD gapped up after Friday’s outside down bar.
  • The bears were disappointed with the rally up to the moving average, that more traders used Friday’s outside down bar to buy back short and to establish longs.
  • The bulls are hopeful for a strong breakout above the outside down bar. However, more likely, a trading range is developing, and more traders used Friday’s outside down bar to buy back shorts, and the bulls will be disappointed.

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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