Trading Update: Monday May 19, 2025
Emini end of day video review
S&P Emini market analysis
Emini daily chart
- The Emini came within 20 points of the 6,000 big round number last Friday.
- The Bulls hope they will be able to reach it sometime today.
- If today does reach the big round number, there will probably be profit-taking, and the market will probably pull back over the next day or two.
- The daily chart is also far away from the moving average. This will increase the odds of the market getting a pullback sometime soon.
- While the odds favor a pullback and a test of the moving average on the daily chart, the rally is strong, and therefore, there’s always the increased risk of a surprise upside breakout.
- This means that most bears are better off waiting for more selling pressure before looking to sell. If a trader buys anywhere and scales in lower, they will probably make money. This means that the downside is probably limited.
Emini 5-minute chart and what to expect today
- The Emini is in a bull trend from the open, starting with bar 1 today.
- It was interesting because the day’s open was the exact low of the day, which is very uncommon. This shows strong buying on the open and increased follow-through after bars one and two today.
- The rally up to bar 9 is climactic. This increases the odds of a trading range lasting several hours. This means that the market may form a tight trading range lasting a couple of hours, and then decide on trend resumption or trend reversal.
- With the market only 40 points away from the 6,000-round number, traders will pay attention to it as it is a reasonable magnet for the market to test.
- Because the rally up to bar 10 is in a bull micro channel, the market will probably go above the bar 10 high sometime today. However, even if the market gets above the bar 10 high, the risk of a trading range lasting 1-2 hours is high following the buy climax on the open.
Friday’s Emini setups
Al created the SP500 Emini charts.
Here are reasonable stop entry setups from Friday. 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.
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.
