Trading Update: Thursday February 20, 2025
Emini end of day video review
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S&P Emini market analysis
Emini daily chart
- The Bulls are continuing to get follow-through buying on the daily chart following last Thursday’s bull breakout of the two-week triangle. However, the rally is at resistance, the December All-time high.
- The follow-through buying increases the odds of a 2nd leg up and test of the December 6th All-time high.
- The bears are hopeful that the recent rally is going to lead to a double top with the January 24th high. However, the buying pressure is likely too strong, and the market will have to see if there are more buyers or sellers above the December high.
- If the bears get a major trend reversal, they must first halt the buying and add to the pressure of selling. Next, they need to create a bear breakout with follow-through selling and get closes below the moving average.
- At the moment, the buying pressure is too intense, which increases the odds of the market reaching the December high.
Emini 5-minute chart and what to expect today
- The Emini gapped down on the open and formed a bear bar on bar 1. While this is good for the bears, the gap down is not as big as it could be and has a tail below bar 1. This increases the odds of buyers below and a test back up to yesterday’s close.
- Traders should expect today to have a lot of trading range price action on the open. This means there is an 80% chance of a trading range open and only a 20% chance of a trend from the open up or down.
- Most traders should consider waiting for 6-12 bars before placing a trade.
- Most traders should wait for the market to form a double top/bottom or a wedge top/bottom since one of the patterns mentioned above often forms before the opening swing begins.
- Traders can also wait for a credible breakout with follow-through to form before placing a trade.
Yesterday’s Emini setups
Al created the SP500 Emini 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 Emini.
Summary of today’s S&P Emini price action
Al created the SP500 Emini charts.
EURUSD Forex market analysis
EURUSD Forex daily chart
- The EURUSD formed a second consecutive bear bar yesterday. However, it failed to close on its low, increasing the odds of buyers below it.
- The bulls have a 6-bar bull microchannel up to the February 14th high. This increases the odds of buyers below and a test above the February high.
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 BrooksPriceAction.com trading room days. 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.
