S&P500 E-mini futures<\/h2>\n\n\n\nThe Weekly<\/em> S&P 500 E-mini chart<\/h3>\n\n\n\n![\"E-mini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2025\/10\/E-mini-Weekly-Large-Wedge-Climactic-Overbought-680x383.jpg\" "\\"\\"")
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n\n- This week\u2019s E-mini candlestick was a big outside bear bar closing near its low.<\/li>\n\n\n\n
- Last week<\/a>, we said buying at current levels is becoming increasingly risky. While the market could still trade slightly higher, the risk of a two-legged minor pullback is increasing.<\/li>\n\n\n\n
- The market made a new all-time high on Thursday but reversed sharply lower on Friday.<\/li>\n\n\n\n
- The bulls reached the 6800-level target in October.<\/li>\n\n\n\n
- They view the current move as a pullback and hope the September 25 low area will act as support.<\/li>\n\n\n\n
- If the market trades lower, they want the 20-week EMA or the September 2 low area to act as support.<\/li>\n\n\n\n
- They hope to get at least a small sideways to up leg to retest the trend extreme high (Oct 9), even if it only forms a lower high.<\/li>\n\n\n\n
- The bears want a reversal from a wedge pattern (May 19, Jul 31, and Oct 9) and a buy climax.<\/li>\n\n\n\n
- The next target for the bears is the 20-week EMA.<\/li>\n\n\n\n
- The problem with the bear\u2019s case is that they could not create sustained follow-through selling on the weekly chart since the April 7 low.<\/li>\n\n\n\n
- They must create consecutive bear bars closing near their lows to show they are back in control.<\/li>\n\n\n\n
- The move up since the April 21 low is in a tight bull channel, indicating strong bullish momentum.<\/li>\n\n\n\n
- The move is slightly climactic and overbought. The market may need to form a TBTL (Ten Bars, Two Legs) pullback before attempting to resume the trend.<\/li>\n\n\n\n
- The bears need to do more by creating strong consecutive bear bars to show they are back in control.<\/li>\n\n\n\n
- The move from the September 2 low was in a 5-bar bull microchannel, indicating persistent buying activity.<\/li>\n\n\n\n
- There could be buyers below the first pullback attempting a reversal (even if it only forms a lower high).<\/li>\n\n\n\n
- However, due to the climactic nature of the move, buying at current levels is increasingly risky. The risk of a two-legged minor pullback is increasing. It may have begun this week.<\/li>\n\n\n\n
- Since this week\u2019s candlestick is a bear bar closing near its low, it is a sell signal bar for next week.<\/li>\n\n\n\n
- The market could gap down next week. Small gaps usually close early.<\/li>\n\n\n\n
- The market may still trade at least a little lower.<\/li>\n\n\n\n
- For now, traders will see if the bears can create a follow-through bear bar, something they couldn\u2019t do since the April low. If they can, the odds of a 2-legged pullback would increase.<\/li>\n\n\n\n
- Or will the market lack follow-through selling again?<\/li>\n<\/ul>\n\n\n\n
The Daily<\/em> S&P 500 E-mini chart<\/h3>\n\n\n\n![\"E-mini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2025\/10\/E-mini-Daily-Wedge-Embedded-Wedge-Bears-Want-PB-680x383.jpg\" "\\"\\"")
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n\n- The market traded slightly sideways to up, making a new all-time high on Thursday but closing as a bear bar. Friday formed a big bear bar closing below the 20-day EMA.<\/li>\n\n\n\n
- Previously<\/a>, we said traders would observe whether the bulls could create a strong retest of the September 22 high, followed by a strong breakout above, or if the market would form a lower high (vs Sep 22), followed by a second leg sideways to down instead.<\/li>\n\n\n\n
- The market traded slightly above the September 22 high but stalled there, reversing lower this week.<\/li>\n\n\n\n
- The bulls created the third leg sideways to up, forming a large wedge pattern (May 19, Jul 31, and Oct 9).<\/li>\n\n\n\n
- They reached the 6800-level measured move and round number target in October.<\/li>\n\n\n\n
- They see the current move as a pullback.<\/li>\n\n\n\n
- If the market trades lower, they want the September 2 low or the 100-day or 200-day EMA area to act as support, forming a major higher low.<\/li>\n\n\n\n
- They want a retest of the October 9 high, even if it only forms a lower high.<\/li>\n\n\n\n
- The bears want a reversal from a large wedge pattern (May 19, Jul 31, and Oct 9) and an embedded wedge (Aug 13, Sept 22, and Oct 9).<\/li>\n\n\n\n
- They want a TBTL (Ten Bars, Two Legs) pullback lasting a few weeks.<\/li>\n\n\n\n
- The next targets for the bears are the 100-day EMA and the 200-day EMA.<\/li>\n\n\n\n
- They must create consecutive bear bars closing near their lows, trading far below the 20-day EMA and the bull trend line, indicating they are back in control.<\/li>\n\n\n\n
- If the market trades higher, they want the 20-day EMA to act as resistance, forming a lower high and a small double top (vs Oct 9).<\/li>\n\n\n\n
- The move from the April 21 low is trading in a tight bull channel, indicating strong buying momentum.<\/li>\n\n\n\n
- The market is slightly overbought and climactic. It may need to form a two- or three-legged pullback to alleviate the overbought condition before resuming the trend.<\/li>\n\n\n\n
- The bears must create strong follow-through selling to demonstrate they are back in control, something they have been unable to do since the April 21 low.<\/li>\n\n\n\n
- For now, traders will observe whether the bears can create sustained follow-through selling.<\/li>\n\n\n\n
- Or will the market trade slightly lower, but stall and form a retest of the October 9 high (even if it only forms a lower high) instead?<\/li>\n<\/ul>\n\n\n\n
Trading room<\/h2>\n\n\n\n
Al Brooks and other presenters talk about the detailed E-mini price action real-time each day in the Brooks Trading Course trading room<\/a>. We offer a 2 day free trial<\/a>.<\/p>\n\n\n\n
\n\n\n\nMarket analysis reports archive<\/h3>\n\n\n\n
![\"E-mini](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2025\/10\/E-mini-Weekly-Large-Wedge-Climactic-Overbought.jpg\" "\\"\\"")
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n
- \n
- This week\u2019s E-mini candlestick was a big outside bear bar closing near its low.<\/li>\n\n\n\n
- Last week<\/a>, we said buying at current levels is becoming increasingly risky. While the market could still trade slightly higher, the risk of a two-legged minor pullback is increasing.<\/li>\n\n\n\n
- The market made a new all-time high on Thursday but reversed sharply lower on Friday.<\/li>\n\n\n\n
- The bulls reached the 6800-level target in October.<\/li>\n\n\n\n
- They view the current move as a pullback and hope the September 25 low area will act as support.<\/li>\n\n\n\n
- If the market trades lower, they want the 20-week EMA or the September 2 low area to act as support.<\/li>\n\n\n\n
- They hope to get at least a small sideways to up leg to retest the trend extreme high (Oct 9), even if it only forms a lower high.<\/li>\n\n\n\n
- The bears want a reversal from a wedge pattern (May 19, Jul 31, and Oct 9) and a buy climax.<\/li>\n\n\n\n
- The next target for the bears is the 20-week EMA.<\/li>\n\n\n\n
- The problem with the bear\u2019s case is that they could not create sustained follow-through selling on the weekly chart since the April 7 low.<\/li>\n\n\n\n
- They must create consecutive bear bars closing near their lows to show they are back in control.<\/li>\n\n\n\n
- The move up since the April 21 low is in a tight bull channel, indicating strong bullish momentum.<\/li>\n\n\n\n
- The move is slightly climactic and overbought. The market may need to form a TBTL (Ten Bars, Two Legs) pullback before attempting to resume the trend.<\/li>\n\n\n\n
- The bears need to do more by creating strong consecutive bear bars to show they are back in control.<\/li>\n\n\n\n
- The move from the September 2 low was in a 5-bar bull microchannel, indicating persistent buying activity.<\/li>\n\n\n\n
- There could be buyers below the first pullback attempting a reversal (even if it only forms a lower high).<\/li>\n\n\n\n
- However, due to the climactic nature of the move, buying at current levels is increasingly risky. The risk of a two-legged minor pullback is increasing. It may have begun this week.<\/li>\n\n\n\n
- Since this week\u2019s candlestick is a bear bar closing near its low, it is a sell signal bar for next week.<\/li>\n\n\n\n
- The market could gap down next week. Small gaps usually close early.<\/li>\n\n\n\n
- The market may still trade at least a little lower.<\/li>\n\n\n\n
- For now, traders will see if the bears can create a follow-through bear bar, something they couldn\u2019t do since the April low. If they can, the odds of a 2-legged pullback would increase.<\/li>\n\n\n\n
- Or will the market lack follow-through selling again?<\/li>\n<\/ul>\n\n\n\n
The Daily<\/em> S&P 500 E-mini chart<\/h3>\n\n\n\n
<\/a><\/figure>\n\n\n\n<\/div>\n\n\n\n- \n
- The market traded slightly sideways to up, making a new all-time high on Thursday but closing as a bear bar. Friday formed a big bear bar closing below the 20-day EMA.<\/li>\n\n\n\n
- Previously<\/a>, we said traders would observe whether the bulls could create a strong retest of the September 22 high, followed by a strong breakout above, or if the market would form a lower high (vs Sep 22), followed by a second leg sideways to down instead.<\/li>\n\n\n\n
- The market traded slightly above the September 22 high but stalled there, reversing lower this week.<\/li>\n\n\n\n
- The bulls created the third leg sideways to up, forming a large wedge pattern (May 19, Jul 31, and Oct 9).<\/li>\n\n\n\n
- They reached the 6800-level measured move and round number target in October.<\/li>\n\n\n\n
- They see the current move as a pullback.<\/li>\n\n\n\n
- If the market trades lower, they want the September 2 low or the 100-day or 200-day EMA area to act as support, forming a major higher low.<\/li>\n\n\n\n
- They want a retest of the October 9 high, even if it only forms a lower high.<\/li>\n\n\n\n
- The bears want a reversal from a large wedge pattern (May 19, Jul 31, and Oct 9) and an embedded wedge (Aug 13, Sept 22, and Oct 9).<\/li>\n\n\n\n
- They want a TBTL (Ten Bars, Two Legs) pullback lasting a few weeks.<\/li>\n\n\n\n
- The next targets for the bears are the 100-day EMA and the 200-day EMA.<\/li>\n\n\n\n
- They must create consecutive bear bars closing near their lows, trading far below the 20-day EMA and the bull trend line, indicating they are back in control.<\/li>\n\n\n\n
- If the market trades higher, they want the 20-day EMA to act as resistance, forming a lower high and a small double top (vs Oct 9).<\/li>\n\n\n\n
- The move from the April 21 low is trading in a tight bull channel, indicating strong buying momentum.<\/li>\n\n\n\n
- The market is slightly overbought and climactic. It may need to form a two- or three-legged pullback to alleviate the overbought condition before resuming the trend.<\/li>\n\n\n\n
- The bears must create strong follow-through selling to demonstrate they are back in control, something they have been unable to do since the April 21 low.<\/li>\n\n\n\n
- For now, traders will observe whether the bears can create sustained follow-through selling.<\/li>\n\n\n\n
- Or will the market trade slightly lower, but stall and form a retest of the October 9 high (even if it only forms a lower high) instead?<\/li>\n<\/ul>\n\n\n\n
Trading room<\/h2>\n\n\n\n
Al Brooks and other presenters talk about the detailed E-mini price action real-time each day in the Brooks Trading Course trading room<\/a>. We offer a 2 day free trial<\/a>.<\/p>\n\n\n\n
\n\n\n\nMarket analysis reports archive<\/h3>\n\n\n\n