Trading Update: Wednesday June 4, 2025
Emini end of day video review
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S&P Emini market analysis
Emini daily chart
- The Emini yesterday formed a bull follow-through bar after testing the prior day’s midpoint. With the Bulls having consecutive bull bars closing in on their highs on Monday and Tuesday, the odds are that we’ll reach 6,000 sometime today.
- The rally up to the May high was strong enough that the first reversal down was likely to be minor. Since the reversal down held above the moving average for all the bars, it increased the chances that the pullback was a bull flag and that the market would go higher.
- The 6,000 is such an important round number that the odds are we’re going to break above 6000 and probably test closer to 6,100. Even if we break above 6,000, we will likely have to test back to 6,000 fairly soon. However, traders selling at 6000 will likely use a wide stop, and therefore, it’s not ideal for most traders.
- The Bulls are hopeful that they can get a strong breakout above the May high, which would increase the odds of getting a measured move up over the past 2-week trading range.
Emini 5-minute chart and what to expect today
- Today, formed a small gap up with consecutive bull bars on bars one and two. In general, Bar 1 has a 20% chance of being the low or high of the day, which increases the odds of getting an opening reversal and a test of the gap, as seen in the close of Bar 81.
- Because yesterday was such a strong bull trend, today was likely to have hesitation, which increases the chances of sellers above and a trading range.
- 6,000 is such an important round number that we may spend a lot of time going sideways near the magnet.
- The first 21 bars of the day have had a lot of trading range price action, and therefore, today is likely to have more trading range price action later in the day.
- Overall, today may spend a lot of time around the 6000 round number and try to close near it at the end of the day.
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 is continuing to go sideways in the upper third of the trading range from the April highs and the May low.
- Yesterday, it formed a strong bear bar closing on its low, which is good for the bears. However, the channel up is tight, and there’s a magnet above, the April high.
- This increases the odds of buyers below yesterday’s low, which is what is happening today.
- Traders will pay close attention to see what the bulls do who bought on Monday. Monday was a strong bull bar closing on its high, and Tuesday was a disappointment bar. So some of those bulls may exit back at the high close of Monday.
- The Bulls are hoping that they can trap the Bears, who sold below yesterday’s low. However, they would need a pretty strong bull bar to do that. Right now, yesterday’s bear reversal bar might be strong enough for at least a small second leg down
- Overall, the daily chart is in a trading range, and therefore, traders should expect sellers above and buyers below. Currently, the odds slightly favor a test of the April high.
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.
