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Emini Bulls Want High 1 Buy Signal

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Trading Update: Monday October 16, 2023

S&P Emini pre-open market analysis

Emini daily chart

  • The Emini pulled back over the past two trading days after last week’s strong rally.
  • The bulls are hopeful that today will form a High 1 Buy Signal
  • The odds favor a second leg up after the rally that began on October 6th. However, the pullback last Thursday and Friday is a warning that the market is in a trading range.
  • The bears who sold the September 29th high and scaled in higher made money. Which is a sign that the market is in a trading range.
  • Overall, traders should expect a second leg up.

Emini 5-minute chart and what to expect today

  • Emini is up 20 points in the overnight Globex session.
  • The overnight Globex market formed a second leg up after a pullback during the overnight hours.
  • There is an 80% chance that today will become a trading range open and only a 20% chance of a trend from the open.
  • Most traders should wait 6-12 bars before placing a trade unless they are comfortable with limit orders and making quick decisions.
  • Most traders should try and catch the opening swing that often begins before the end of the second hour.
  • It is common for the market to form the opening swing after the formation of a double top/bottom or a wedge top/bottom.
  • Traders should pay attention to yesterday’s high and the open of the day.

Emini intraday market update

  • The Emini gapped up and formed a triangle before breaking out to the upside.
  • At bar 21, the market formed a parabolic wedge top and formed a two-legged pullback down to the moving average (bar 27).
  • The channel down is tight enough that the bears want a second leg down.
  • The bulls see the rally up to the high of the day as being strong enough for a second leg up.
  • As of bar 42, the market is in breakout mode; on bar 42, it failed to break out to the downside. It is reasonable to expect a test up to the high of the day.  
  • Even if the bulls get a rally to the high of the day, the odds will favor a trading range and a successful breakout to the upside.

Friday’s Emini setups

SP500 Emini 5-Min Chart Bear Trend From the Open Then Trading Range

Al created the SP500 Emini charts.

Here are reasonable stop entry setups from Friday. I show each buy entry with a green rectangle and each sell entry with a red rectangle. 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

EURUSD Daily Sideways Likely
  • The EURUSD sold off last Thursday and Friday, testing near the October lows.
  • While the bears are hopeful that last Thursday’s bear breakout will lead to lower prices, more likely, the selloff is part of a trading range.
  • Today, the bulls are trying to disappoint the bears and will likely succeed.
  • Even if today is a bull bar closing on its high, there will probably be sellers above for at least a brief attempt at a second leg down.

Summary of today’s S&P Emini price action

SP500 Emini 5-Min Chart Bull Trend From the Open and Then Trading Range

Al created the SP500 Emini charts.

End of day video review

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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