Trading Update: Thursday October 23, 2025
S&P E-mini market analysis
E-mini daily chart
- Yesterday, the E-mini sold off following Tuesday’s low to short on the daily chart.
- The market is near resistance and likely to find sellers, leading to limited upside
- The October 10th fair breakout was strong enough that the odds favor a second leg down in a test of its low.
- The bulls have done a good job making the market go sideways, but the reality is the daily chart is now entering a trading range, and this increases the probability of sellers above 6,800.
- Yesterday’s downside breakout closed open gaps, and that is a sign that the current rally is a leg in what will become a trading range.
- It’s possible the daily chart has to form a wedge top with the October 15th and October 21st being the 1st and 2nd legs of the wedge.
E-mini 5-minute chart and what to expect today
- The market formed little to no gap and rallied for the first five bars on the open.
- This was a buy climax late in a bull channel, which increased the odds of sellers above and the market forming a trading range open.
- On the open, there’s typically a 50% chance that the first breakout up or down will fail and go sideways.
- There’s an 80% chance of the trading range opening, which is what we got today.
- As of Bar 30, the market is entering breakout mode. Because of bars 28-29. That’s a strong enough breakout that the odds favor a second leg up in a test of the bar 5 high, which is what the bulls are getting.
- Their opening rally up to bar 5 was strong enough that the odds favored a trading range opening, which limited downside potential.
Yesterday’s E-mini setups
Richard created the SP500 E-mini chart – Al travelling.
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 E-mini.
Summary of today’s S&P E-mini price action
Richard created the SP500 E-mini chart – Al travelling.
E-mini 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 E-mini price action real-time each day in the Brooks Trading Course trading room. We offer a 2 day free trial.
Charts use Pacific Time
When times are mentioned, it is USA Pacific Time. The E-mini 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.
Hi there, can someone explain why selling below bar 17 is not a wedge DT LH entry ?
If long, once the 17th bar closes, is it at least reasonable to get out below ?
Yes. The seventeenth candle was a bearish candle following a stronger bullish candle. There was also an “ioi” pattern which usually indicates that the price is not going to increase or decrease significantly in the immediate future. Betting that there were limit orders below the strong bullish candle and that the price was going to increase to the close of that candle before it significantly decreased, was reasonable. Exiting long positions below the seventeenth candle’s low was also reasonable. There was no “wedge-top” because there were only two legs up. The imaginary “low-2” on the fifteenth candle was only apparent on a smaller time-frame meaning the “wedge-top” on smaller time-frame was going to result in minimal price movement. It really depends upon if one is scalping or swing trading the decision to exit below the seventeenth candle’s low.
hows that for some completely wrong anlysis – another day where theres only upside