Trading Update: Friday December 5, 2025
S&P E-mini market analysis
E-mini daily chart
- The E-mini broke out of the 4-day tight trading range and rallied to the November 12th lower high and found sellers above.
- This is a reminder that the daily chart is still in an overall trading range and may find sellers in the upper portion of the range. This increases the risk that bulls will become disappointed and that the market will need a deeper pullback after the rally from the November low.
- The 7,000 round number is still a logical magnet for the market to reach, and the market may try to get there before the end of the year.
- Even if the market fails to reach the 7,000 round number before the end of the year, the odds favor the market reaching the magnet over the next several weeks to months.
- The Bulls still see the rally up to November 28th to be strong enough for a second leg up. Even if the market gets a deep pullback, bulls will still look for a higher low above the November 21st low.
- Overall, the Bulls are trying to get above the all-time high and reach the 7,000 round number. The bulls are doing a good job; however, the market is approaching resistance, which increases the odds of a sideways move. Because the round number of 7,000 is important, the odds favor the market reaching it.
E-mini 5-minute chart and what to expect today
- Today gapped up on the open and rallied up to bar 9. While the breakout was strong and likely to get a second leg up, it formed a parabolic wedge top, which increased the odds of a reversal and the formation of a trading range.
- The bears managed to get a strong downside breakout with bars 17 and 18, and the market sold off, testing the low of bar 3, the low of the day.
- The sell-off to BAR 27 is good for the bears; however, it has a lot of overlap, and it’s parabolic. Given all the trading-range price action today, the odds are the market will find buyers around the 3-low and probably have to bounce back to the midpoint of the day’s range.
- Bulls who bought the nine close and scaled in lower, such as below the three lows, will probably be able to avoid a loss. Because of this, the odds are that the market will bounce.
- The reversal up on bar 28 is a strong enough reversal bar that bears will probably look to exit and wait to sell after a couple of legs to see what the bulls can get.
- Because today is Friday, weekly support and resistance are important. Traders should be prepared for the possibility of a surprise breakout, up or down, late in the day as the market decides the close of the weekly chart.
- Because of all the trading range price action that today has had, traders should assume that the rest of the day will have a lot of trading range price action as well.
Yesterday’s E-mini setups
Richard created the SP500 E-mini chart.
Here are reasonable stop entry setups from yesterday. Chart shows each buy entry bar with a green arrow and each sell entry bar with a red arrow. Buyers of the Brooks Trading Course have access to a near 4-year library of detailed explanations of swing trade setups (see Online Course/BTC Daily Setups) linked to the Brooks Encyclopedia of Chart Patterns product.
The 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.
E-mini end of day video review
Periodic end of day review videos will be moved to top of page when done.
EURUSD Forex market analysis
EURUSD Forex daily chart
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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.
