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Emini Low 1 with Weak Context for Bulls

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Trading Update: Wednesday August 6, 2025

S&P E-mini market analysis

E-mini daily chart

  • The Emini yesterday formed a Low 1 short following last Friday’s gap down.
  • The bears are hopeful that the low one will lead to a second leg down. However, as I mentioned yesterday, the problem for the bears is that the markets are calm at the moving average.
  • The Bulls will see yesterday’s Low 1 as a pullback following Monday’s bull breakout bar.
  • The Bulls are hopeful that today will form a strong bull bar closing on its high, increasing the odds that we test up to the August high.
  • While the Bears have done a good job getting a bar below the moving average, that is not enough. The reality is that the bull channel has been tight and above the moving average for several bars.
  • This increases the odds that the best the Bears can expect is a trading range lasting several bars.
  • The bears need to increase the selling pressure if they are going to get a possible major trend reversal. Without this, the best the Bears can expect is a trading range and sideways.

E-mini 5-minute chart and what to expect today

  • Today, it formed a small gap up and went sideways, creating an expanding triangle for the first 12 bars.
  • The bulls got a strong reversal up to bar 22, making the market Always In Long
  • Because yesterday is a Low 1 short with bad context, the Bulls want to get above yesterday’s high. This means that yesterday’s high is a logical magnet for the market’s test today.
  • The rally from bar 12 increases the odds that we’ve seen the low of the day.  
  • The channel up to bar 22 is tight enough that the odds are the first reversal down will probably be minor.
  • While the Bulls have done a good job, traders must remember that the market is inside yesterday’s range. That increases the chances that the market finds disappointment near yesterday’s high and goes sideways.
  • For the Bears, they need to add to the selling pressure. The rally up to 22 is fairly tight, and that lowers the probability for the Bears getting a strong reversal down.
  • The bears who sold the fair breakout from bar 9 to 11 likely gave up on 14 and 15. This lowers the probability of the market getting back down to the bar 15 close.
  • Overall, the market will probably get up to yesterday’s high over the next several bars.

Yesterday’s E-mini setups

SP500 Emini 5-Min Opening Reversal Down to DB MTR and Trading Range into Close

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

SP500 Emini 5-Min Opening Range DB Then Bull Breakout and Trading Range

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 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 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.

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