Trading Update: Thursday February 27, 2025
Emini end of day video review
S&P Emini market analysis
Emini daily chart
- The Emini on the daily chart yesterday formed a weak Low 1 short following the recent downside breakout. Yesterday’s Low 1 has a tail below the bar, which increased the odds of buyers below it.
- It is common for Low 1’s to initially find buyers below and back, which later leads to trend resumption. This is likely going on right now and is part of why the market gapped up on the open.
- The bulls are hopeful that yesterday’s Low 1 will lead to a successful micro double bottom and reversal up. While a reversal up is likely, it will probably be minor. This means the best the bulls will likely get is a trading range.
- The selloff down to Tuesday’s low is strong enough for a 2nd leg down. This means that there are probably sellers above scaling in higher.
Emini 5-minute chart and what to expect today
- The U.S. Session gapped and formed an opening reversal with bar 2. The gap was small and likely to close, which is what happened with bar 3.
- Bar 3 is a strong enough bear breakout that will likely get a 2nd leg down. However, because today’s open is likely to have a lot of trading range price action, there is an increased risk of bar 3 getting a deep pullback before the bears get a 2nd leg down.
- The bears will see yesterday’s Low as a magnet because it is a Low 1 on the daily chart.
- The bulls are hopeful that bar 3 is the early formation of an expanding triangle. More likely, the market is going at least a little lower to allow the bears to get a 2nd leg down after bar 3.
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 double top, February 14th and 26th high. Yesterday’s bear reversal bar closed near its low.
- This was a strong enough signal bar that it increased the odds of bulls and bears both selling below yesterday’s low, taking a chance that the market would test down to the February 19th neckline.
- The bears are hopeful that a strong bear breakout bar will close on its low today. This would increase the odds of a 2nd leg down and lower prices.
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 BrooksPriceAction.com trading room days. 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.
