Trading Update: Thursday August 21, 2025
E-mini end of day video review
S&P E-mini market analysis
E-mini daily chart
- The E-mini sold off to the midpoint of the August rally yesterday and formed a tail below the bar.
- This is a sign that the market is likely going to go sideways for several days.
- The bears are hopeful that the high of last week will be the start of a higher high major trend reversal. However, as I’ve said for many days, the reality is the market will probably have to form some variation of a lower high major turn reversal if the bears are going to be successful.
- This means that realistically, traders selling right here will probably have to sit through a pullback lasting several bars.
- The bulls still see the market as a bull trend, and therefore, they will buy every reversal attempt.
- The problem for the Bulls is that the Bears are beginning to make money selling below bars, which is a sign that the bull trend is converting into a trading range.
- Overall, the daily chart is probably going to get a bounce; however, the market may stay below the high of last week, which could limit the potential upside.
- The Bears are hoping for a successful reversal down. However, they need to do more than what they’ve done right here.
E-mini 5-minute chart and what to expect today
- The market gap down today and went sideways for the first 6 bars. This is a sign of trading range price action on the open inside of a larger trading range.
- Because of the higher time frame context on the daily chart, the odds are that there are likely buyers near yesterday’s low, which will limit the downside.
- The Bulls got a strong outside up bar on 7 and 5 bull bars for follow-through. However, it formed a variation of a spike in the channel and reversed down on bar 13 after testing yesterday’s close.
- So far, as of bar 27, the market has gone sideways for a lot of bars. This increases the odds that today we’ll continue to have a lot of trading range price action.
- Today will likely try to close above the open of the day to disappoint the bears on the daily chart.
- The most important thing is to expect every move to be minor until there’s a clear, strong breakout with follow-through. This means that it is important to be mindful that trading ranges often reverse after the second and third legs.
Yesterday’s E-mini setups
Al created the SP500 E-mini 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 E-mini.
Summary of today’s S&P E-mini price action
Al created the SP500 E-mini charts.
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.
