S&P E-mini Market Analysis
E-mini daily chart
- The Emini yesterday formed a bull reversal bar, closing near its midpoint, after testing below the November 2024 lows.
- This is likely an area of support, and the market will probably find buyers around this location and the 6,600 round number.
- There are probably buyers below yesterday’s low willing to scale in lower.
- The bears are hopeful that the selling pressure will continue on the daily chart. More likely, the bulls will get a reversal up and a test back to the 6,900 over the next several weeks.
- Overall, the selling is getting climactic at support. This increases the odds that the market will likely find buyers near the November low and the 6,600 round number.
E-mini 5-minute chart and what to expect today
- Today gapped down on the open, and bears managed to get a double top with bars 1 and 4. The bears got a strong breakout below the bar 3 neckline and the market fell for a measured move down.
- While the bar 4-6 bear breakout was strong, the reality was that it was likely a bear leg in what would become a trading range.
- This increased the odds of the bulls getting a reversal up and test back to the bar 3 low later today.
- As of bar 34 the bulls have managed to form a tight bull channel. They are hopeful that it is forming an endless pullback that will lead to an upside bull breakout. Even if the bulls get the upside breakout. A trading range is most likely.
Yesterday’s E-mini setups
S&P E-mini market analysis
E-mini daily chart
- The Emini yesterday formed a bull reversal bar closing near its midpoint yesterday, after testing below the November 2024 lows.
- This is likely an area of support and the market will probably find buyers around this location and the 6,600 round number.
- There are probably buyers below yesterday’s low willing to scale in lower.
- The bears are hopeful that the selling pressure will continue on the daily chart. More likely, the bulls will get a reversal up and a test back to the 6,900 over the next several weeks.
- Overall, the selling is getting climactic at support. This increases the odds that the market will likely find buyers near the November low and the 6,600 round number.
E-mini 5-minute chart and what to expect today
- Today gapped down on the open and bears managed to get a double top with bars 1 and 4. The bears got a strong breakout below the bar 3 neckline and the market fell for a measured move down.
- While the bar 4-6 bear breakout was strong, the reality was that it was likely a bear leg in what would become a trading range.
- This increased the odds of the bulls getting a reversal up and test back to the bar 3 low later today.
- As of bar 34 the bulls have managed to form a tight bull channel. They are hopeful that it is forming an endless pullback that will lead to an upside bull breakout. Even if the bulls get the upside breakout. A trading range is most likely.
Yesterday’s E-mini setups
Here are reasonable stop entry setups from yesterday. Chart shows each buy entry bar with a green arrow and each sell entry bar with a red arrow. Buyers of the Brooks Trading Course have access to a near 4-year library of detailed explanations of swing trade setups (see Online Course/BTC Daily Setups) linked to the Brooks Encyclopedia of Chart Patterns product.
The 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 E-mini.
