Trading Update: Thursday March 27, 2025
S&P Emini market analysis
Emini daily chart
- The Emini sold off yesterday after getting a bull close above the moving average earlier this week. The bulls want today to have a bad follow-through after yesterday’s selloff and form a reversal bar closing near its high.
- The rally up to the moving average formed two legs, and because it was at resistance, the bears sold yesterday, creating a sharp reversal down.
- While yesterday was good for the bears, the context is not ideal because of the recent rally over the past couple of days. This increases the odds that the bears will not get follow-through selling and today will try to form a bull reversal bar, which is what is happening right now.
- Overall, yesterday was a strong bear reversal bar. The bulls will attempt to form a strong bull reversal bar today to counteract the selling and possibly trap the bears who sold after yesterday’s downside breakout bar.
Emini 5-minute chart and what to expect today
- The Emini gapped down and formed an opening reversal after the selloff on bars 1 and 2.
- The bulls formed a strong reversal up on bars 4-6, which increased the odds of a 2nd leg up and some measured move based on the bull breakout.
- The location was terrible for the bears on the open because the market was below yesterday’s low, which was a likely support level. Because of the reasons mentioned above, the odds favored buyers below yesterday’s low, which meant that it was possible to reverse up today.
- As of bar 18, the bulls have a strong reversal up and are hopeful that today will remain a bull trend day. Currently, the odds favor buyers below, and the market is forming either a trading range. This means that any reversal down is likely to find buyers not far below.
- The bear will need to halt the buying pressure if they are going to have a chance at getting a successful reversal.
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.
Emini end of day video review
End Of Day Review was presented in the Trading Room today. See below for details on how to sign up.
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.
