Trading Update: Wednesday August 27, 2025
E-mini end of day video review
You can also watch Joseph’s EOD Review for today on his YouTube channel.
S&P E-mini market analysis
E-mini daily chart
- The E-mini yesterday formed a High 1 buy signal bar, closing on its high, following last Friday’s Low reversal bar. While the High 1 is good for the bulls, it is inside of a tight trading range, thus lowering the probability for the bulls.
- Traders will see yesterday’s strong enough high one buy with decent context that the odds favor a second leg up above last Friday’s high.
- Because of all the sideways price action over the past several days, there will likely be sellers above the August high, and the market will probably find profit. At the moment, the market is likely to remain in a long position and continue sideways to up, unless the bears can develop more selling pressure and close below the moving average.
- This means that whatever breakout we get above the August high will likely go sideways.
- The bears have done a good job of making the market go sideways, but they have not done enough to create a major trend reversal.
- This means that the bears will likely need to develop more selling pressure before traders will begin to believe that the bears have a reasonable chance at getting a strong reversal down.
- Overall, the daily chart is likely to continue to go sideways as the bears attempt to build more selling pressure To get a major reversal down.
E-mini 5-minute chart and what to expect today
- Today formed a small gap down after yesterday’s rally up to bar 81, and the first bar of the day formed a bull reversal bar.
- This increased the odds that the market was going to test up to the 81 close, which it did during the first 7 bars.
- The Bulls have a bull trend from the open, and every close has been above the moving average for the first 27 bars.
- The Bulls are hopeful that this is the start of a second leg up after last Friday’s large upside breakout.
- The Bulls want today’s bull trend to last for the rest of the day, creating a strong entry bar on the daily chart.
- Because of all the sideways trading from bars 12 to 27, There’s an increased risk that today will evolve into a trading range and not be a bull trend that lasts all day.
Yesterday’s E-mini setups
Al created the SP500 E-mini 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 E-mini.
Summary of today’s S&P E-mini price action
Al created the SP500 E-mini 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 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.
