Trading Update: Tuesday December 16, 2025
E-mini end of day video review
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S&P E-mini market analysis
E-mini daily chart
- The E-Mini has formed consecutive bear bars on the daily chart, with yesterday’s bar being an inside bar. The bears are beginning to increase selling pressure inside the tight trading range that has gone on for the past two weeks.
- Because of the hesitation in sideways trading following the late November rally, and the overall daily chart being in a trading range for several months, this increases the odds of the market getting a pullback in testing down to the November 20th high, which is what today is doing.
- Because bears got trapped selling the November 20th high, it’ll probably act as support, and the market will likely find buyers.
- The market may have to test down to 6,800, which is a round number and likely a support level.
- Even if the bears get down to 6,800, the odds favor buyers around the midpoint of the November low to the December high, and the bulls getting a second leg up in a test back to the all-time high in 7,000.
- The bears are doing a good job getting a series of bear bars; they have not done enough to make it a clear sell to close the market, and there is increased risk that the bulls can still get the reversal up.
E-mini 5-minute chart and what to expect today
- Yesterday, sold off for the first 12 bars. Went sideways for the majority of the day, and today gapped down, forming a second leg from yesterday’s early sell-off.
- The market formed a wedge bottom with bars 4, 12, and 26 today, with the wedge bottom forming a truncated wedge. A truncated wedge is where the third leg (Bar 26) forms a higher low instead of a lower low.
- The bears did a good job with the selling on the second leg down to bar 11, and then the sell-off down to bar 24. However, because of all the buying pressure today, the odds favor a trading range and not a bear trend. This is why the market is getting a bounce around bar 26.
- At the moment, the odds favor a test of the bar 18 high, which is the top of the most recent leg down in the wedge (the third leg).
- The open of the day is nearby. And because of that, today we’ll probably rally back to the open of the day, confirming the trading range price action.
- The bulls are hopeful that today is forming a double bottom with bars 12 and 26. They want a strong break above the neckline, bar 18, and then a measured move up testing the high of the day.
- Because of the prolonged tight trading range yesterday that lasted around 70 bars, there’s an increased risk that the market may rally back into the midpoint of that tight trading range. A trading range is an area of agreement, and if the market were able to stay in the same price level for around 70 bars, that increases the probability that the market will try to probe back to that price level, which is near 6,880.
- Overall, as of Bar 31, the market is likely to get a couple of legs up and test back to the open of the day. If the bulls are strong, the market may get back to the midpoint of yesterday’s trading range.
Yesterday’s E-mini setups
Richard created the SP500 E-mini chart.
Here are reasonable stop entry setups from yesterday. Chart shows each buy entry bar with a green arrow and each sell entry bar with a red arrow. Buyers of the Brooks Trading Course have access to a near 4-year library of detailed explanations of swing trade setups (see Online Course/BTC Daily Setups) linked to the Brooks Encyclopedia of Chart Patterns product.
The 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.
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.
