Trading Update: Tuesday April 22, 2025
Emini end of day video review
S&P Emini market analysis
Emini daily chart
- The Emini sold off below the 5,200 round number yesterday. However, it failed to close on its low, creating a tail below the bar, increasing the risk of a bounce.
- The bulls are hopeful that they will form a strong bull reversal bar closing on its high today. This would increase the risk of the selloff down to yesterday’s low, which is two legs down in a trading range.
- The Emini had a big selloff and a big rally during the month of April. This increases the risk of sideways and a trading range lasting several bars.
- The April 9th bull breakout is strong and likely to influence the market. This increases the risk of buyers below and an attempt at a reversal up.
- Overall, the bears will likely be disappointed by the lack of follow-through selling. This increases the risk of bears taking partial profits and the market getting a bounce.
Emini 5-minute chart and what to expect today
- Today, a large gap formed following yesterday’s large selloff. Because yesterday was climactic for the bears, today was likely to be either a bull trend or at the trading range.
- The bulls formed consecutive bull bars with bars 2-3. They are hopeful that this is the start of a bull trend from the open lasting all day.
- The odds are against another trend from the open, which means that today will likely convert into a trading range at some point.
- The bulls have done a good job with the buying pressure on the open. This means that today is unlikely to become a bear trend day, meaning a trading range day is most likely.
Yesterday’s Emini setups
Richard created the SP500 Emini 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 Emini.
Summary of today’s S&P Emini price action
Al created the SP500 Emini chart.
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 Brooks Price Action trading room. 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.
I don’t mean to be a heretic, but for “Yesterday’s Emini Setups”, the first chart on the blog, if I had entered on B22, I would have preferred to get out on B23 and take the loss. I would hate to have to muster all my nerve to add back in just at the right time and then take a breakeven trade, as Al mentions on the chart notes. I’ve blown my account with trades like that.
With that said, Al’s charts are extremely valuable. I’ve figured out that if I can have the discipline to enter on entry bars (all things considered), not look at the bar during development, and exit on a opposite signal bar or so, I can get the consistency I’ve worked at for years now.
And, looking at his marked-up charts in the morning before trading or during trading can get me in the mental habit of recognizing entries and exits and responding to them. (I’ve also watched all 110 hours of the videos and some more than once. Knowing the candle’s helps. After all, Al’s first book was called “Bar by Bar” and that is the way to trade I’m describing here, at least in my own version of it up to this point.)
Chi Kung breathing exercises help. (Obviously, I care too much.) Also, making a list on a piece of notebook paper for each bar: 8:35 Bear buy bar, 8:40 Bear reversal bar @ MA, 2nd leg, 8:45 Bull mid-close 2nd entry, arrow up, enter. etc.
Doing that helps me be more objective, and if I draw that arrow after I describe the bar, then I pretty much have to go on the chart and do it. That goes for entries, additions (only one) and exits (full position). There are some losses in there, but more wins and one day I might be able to hold on for one of these big swings.
Good luck
Hi Ryan,
No worries. I am a heretic too, and point taken. Absolutely right to be concerned about such a “reasonable” trade. Few of us can afford such wide stops, and only in hindsight can such a breakeven recovery be documented.
When Al travels I usually create whole slide but on this occasion Al sent me a list of points to include, including the addon/breakeven comment. I actually considered not adding this, as clearly not valid for many, but went ahead. But given your valid comment I have modified slide to remove it altogether.
Thanks for your valuable input.
“The bulls are hopeful that they will form a strong bull reversal bar closing on its high today. This would increase the risk of the selloff down to yesterday’s low, which is two legs down in a trading range.“
The principle is, can it only be closed at the top after the selloff?
What I meant to say is that the if yesterday closes near its high that would increase the odds that the selloff down to yesterday’s low was two-legged selloff in a trading range, which is what happened.
If bears agree the selloff is a leg in a trading range, they will be quick to exit, as we can see happening now.