Trading Update: Monday October 20, 2025
S&P E-mini market analysis
E-mini daily chart
- The Daily chart has gone sideways for the past 5 trading days. The Bulls have done a good job disappointing the Bears after the October 10th Bear Breakout.
- At the moment, the odds still favor the Bears getting a second leg down and a test below the October 10th bear breakout.
- The bulls are hopeful that the market is forming an endless pullback, and that today is forming a bull breakout of the bear flag that lasted for five days.
- Even if the bulls break above the October 10th high, the odds are that it is possible that the market continues to go sideways or up in the bears. Probably sellers not far above.
- This increases the odds that the daily chart is converting into a bull channel that is likely to go sideways for the next several weeks.
- At the moment, the odds favor the bears getting a 2nd leg down following the October 10th downside breakout.
- The sideways trading following the downside breakout is a reminder that the daily chart is likely going to convert into a trading range and go sideways for several bars.
E-mini 5-minute chart and what to expect today
- The market gapped up and formed a bull trend from the open with the first bar of the day.
- The trend from the open was strong up to bar 18. The market formed a strong rally up to bar 18. However, which in it formed consecutive buy climaxes, which increases the odds that the market will go sideways.
- Because the daily chart is approaching resistance, today’s bull trend from the open will probably be disappointing and fail to close on its high.
- If the market continues to go sideways for several bars at the moving average, traders will begin to wonder about the possibility of the bears getting a downside breakout below the moving average and a test back to the open of the day.
Friday’s E-mini setups
Richard created the SP500 E-mini chart – Al travelling.
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 E-mini.
Summary of today’s S&P E-mini price action
Richard created the SP500 E-mini chart – Al travelling.
E-mini end of day video review
Periodic end of day review videos will be moved to top of page when done.
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.
