Trading Update: Thursday July 24, 2025
E-mini end of day video review
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S&P E-mini market analysis
E-mini daily chart
- The Emini yesterday formed an upside breakout bar following Wednesday’s High 1 buy signal bar.
- The daily Chart is continuing to show signs of a tight bull channel, which makes it difficult for the bears to sell.
- While the rally has been strong for the bulls, the odds are that it will evolve into a trading range.
- This means that gaps are probably going to get retested and, ultimately, the market will probably fall below the July 16th low.
- This means that the bears who sold anywhere around July 16th and scaled on higher are probably going to make money if they’re willing to use a wide stop and scale in.
- Most traders are better off waiting for the market to go sideways and developing more selling pressure before establishing short positions.
- In general, when the majority of the bars are entirely above the moving average. It’s usually better to only look to buy, rather than sell.
- Overall, the market is still Always In Long, and the bears have not done enough. However, the market has been away from the moving average for a lot of bars, and the odds favor a test back to the moving average in the formation of a trading range soon.
E-mini 5-minute chart and what to expect today
- Today, formed a small gap up and went sideways for the first 3 bars.
- The Bulls managed to get an upside breakout on 4, but it reversed back down to the three low.
- The bulls want today to continue to form a tight bull channel with most of the bars above the moving average.
- Because of the selling pressure down to bar 9, the odds are that there are sellers above bar 8 high, and today is likely to evolve into a trading range.
- This means that the market will probably spend a lot of time near the open of the day.
- Because the channel is tight, in the market, it is Always In Long. Many traders will be hesitant to sell without a credible stop entry or a strong reversal down.
- Overall, the market is still in a tight bull channel, and the best the bears can expect is a trading range without more selling pressure. This means that the bears will probably need a trend line break of the tight bull channel, and even then, they’ll probably need a retest of the highs in the formation of a major trend reversal before they can get a possible major reversal down.
Yesterday’s E-mini setups
Brad created the SP500 E-mini charts – Al travelling.
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
Brad created the SP500 E-mini charts – Al travelling.
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 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 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.
