Trading Update: Tuesday May 13, 2025
Emini end of day video review
S&P Emini market analysis
Emini daily chart
- The Emini gapped on Monday, forming a bull bar closing near its high. While this is good for the bulls, it’s a buy climax late in a bull channel, and it’s getting far from the moving average.
- Typically, when you get a buy climax late in a bull channel, it usually leads to profit-taking. So there’s an added risk that we will pull back sometime soon.
- The bulls see the 6,000 big round number in sight, and the market will probably have to get there over the next week or two.
- The Bears hope the current rally will be a buy climax leading to exhaustion and a reversal down to the most recent higher low, May 7th low.
- Overall, we’ll probably pull back for a couple of legs and get up to the 6,000 big round number.
- The market may be unable to escape the gravitational pull of 6,000, and we go straight up to it. The daily chart will likely pull back for at least a bar or two.
Emini 5-minute chart and what to expect today
- Today, a small gap in the bull trend formed from the open up to bar 11. While this is strong for the bulls, it’s climactic, and therefore, there’s increased risk that we will create a trading range lasting several hours.
- Bar 9 is a large buy climax bar late in a bull rally. This increases the odds of a pullback lasting a couple of legs and a test to the bar 9 low and the moving average.
- The bulls are hopeful that the bull trend will last all day. However, the rally on the open is unsustainable buying, which increases the odds of the market converting into a trading range.
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.
EURUSD Forex market analysis
EURUSD Forex daily chart
- The EURUSD formed a bear reversal bar closing below the moving average yesterday. However, the bar was climactic and increased the risk of a pullback.
- The bears have done a good job getting bars below the moving average.
- However, the market has formed a lot of bars above the moving average. And because of that, the first reversal below the moving average will probably lead to a trading range more than the start of a strong bear selloff.
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.
