Emini Pullback to Last Friday’s Low

Trading Update: Wednesday February 26, 2025

Emini end of day video review

S&P Emini market analysis

Emini daily chart

• The Emini is beginning to pull back after last Friday’s downside breakout bar. Some bulls likely bought last Friday’s close, taking a chance that Monday would rally, giving them a scalp; they are hopeful that the market will retest their entry price, allowing them out of a bad trade.
•  However, instead, the bulls got trapped with Monday’s selloff. The bulls who are still long will likely be happy to exit back at last Friday’s low.
• This means that last Friday is a likely magnet for the market to test. If the market reaches the low, there will likely be sellers, and the bears will get a 2^nd leg down.
• The bulls want the selloff to be a failed breakout of the February 3^rd low followed by a strong reversal above the February 19^th high. However, the current reversal up will likely be minor, and the bears will get a 2^nd leg down below yesterday’s low.
• Because the market is in a trading range, profit-taking bears are at this current location. The risk is getting big for the bears, and they would look to sell a pullback instead.

Emini 5-minute chart and what to expect today

• The Emini rallied, forming a bull trend from the open up to bar 8. The bulls are hopeful that today will form a bull trend for the rest of the day.
• While a bull trend is certainly possible, a trading range is more likely to form at some point today.
• The buying pressure is strong, which means that the first reversal will likely be minor, and buyers will be found below.
• Last Friday’s low is a likely magnet for the market to test. The market is so close to last Friday’s low that it will probably reach it today.
• Because of the buying pressure and the market approaching last Friday’s low, bears may step aside, creating a buy vacuum test for last Friday’s low.
• Because the current buying pressure is strong, traders should wait for more selling pressure before going short. At a minimum, the bears need to halt the buying by making the market go sideways. Ideally, the bears need to begin to for bear bars closing on their lows.
• It would be ideal for the bears if the market forms a major trend reversal with a decisive trendline break, followed by a weak retest of the high.  More major trend reversal attempts to lead to sideways trading and not opposite trends.

Yesterday’s Emini setups

Al created the SP500 Emini charts.

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 charts.

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EURUSD Forex market analysis

EURUSD Forex daily chart

• The EURUSD is forming a tight trading range with many overlapping bars, following the rally to the February 14^th high.
• The bears are hopeful that the daily chart is forming a double top with the January 27^th and February 24^th high.
• Next, the bears want today to form a strong bear reversal bar closing on its low, followed by a strong entry bar tomorrow.
• If the bears can get a series of strong bear trend bars, they will have a shot at getting down to the February low. More likely, the best the bears can get is a trading range.

See the weekly update for a discussion of the price action on the weekly chart and for what to expect going into next week.

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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.

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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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