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E-mini Second Leg Up Likely

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Trading Update: Monday December 8, 2025

S&P E-mini market analysis

E-mini daily chart

  • The daily chart of the E-mini is continuing to go sideways following the upside breakout of the November 12th lower high on the daily chart.
  • The Bears are hopeful that the rally up to last Friday’s high will form a lower high with the October 29th All-time high. While this is possible, the odds are against it, and the odds favor a test of the 7,000 major round number.
  • Today, triggered the sell below last Friday’s bear reversal bar. While this is good for the bears, it is a weak sell signal bar. This increases the odds of buyers below its low and the market going above last Friday’s high.
  • The Bears want today to form a bear entry bar closing on its low and below last Friday’s low. This would increase the odds of a 2nd leg down, even if it is just one bar.
  • Because the rally from the November 20th low is tight, the odds are that whatever reversal down that we get will be minor.
  • It is important to remember that while the odds favor a test of the 7,000 round number, the market may have to get a deep pullback and a test of the midpoint of the November rally. This is because the market is in a trading range on the daily chart, which increases the odds of disappointment for the bulls.

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

  • The E-mini gapped up on the open and formed a bear trend with bar 1.
  • The bear trend had a lot of overlapping bars down to bar 19. This weakens the argument that the bear trend will last all day. This increases the odds that the selloff down to bar 19 is part of a trading range on a higher time frame, and that the bulls get a reversal up back to the 6,866 price level.
  • As of bar 28, the market is still Always In Short; however, it is likely to find support soon and begin to go sideways. This makes it difficult for the bears to sell unless they are willing to scale in at higher levels.
  • The bulls need to make the market continue to go sideways and develop more buying pressure. This would increase the odds of a reversal up and a test of last Friday’s bar 38 low, which is the bottom of yesterday’s low and the 6,866 price level I mentioned above.
  • Overall, while the market is in a bear trend, it has a lot of overlapping bars inside of a trading range on a higher time frame. This increases the odds of the bear trend getting a reversal up and the market not closing on its low. A reversal does not mean a bull trend; it just means that the market is more likely to try to close around its midpoint.
  • As of bar 29, the market is testing the bottom of a bear channel (Last Friday’s bar 1 low, and bar 38 low projecting down). The market broke below the bear channel line on bar 19 and reversed back into the channel.
  • When channels fail to breakout below, that increases the odds of a test of the top of the channel, which would be around the 6,870 price level.

Friday’s E-mini setups

SP500 E-mini 5-Min Parabolic Wedge Top Reversal Then Transition into Trading Range

Richard created the SP500 E-mini chart.

Here are reasonable stop entry setups from Friday. 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

SP500 E-mini 5-Min Bear Trend From Open Then Trading Range

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.

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.

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