Trading Update: Tuesday August 26, 2025
E-mini end of day video review
S&P E-mini market analysis
E-mini daily chart
- The E-mini formed a disappointing follow-through bar after Friday’s strong bull breakout. This is a reminder that Friday’s rally is likely a continuation of the trading range, and not the start of a measured move up.
- The Bulls will see last Friday’s breakout as being strong enough for a second leg up. This means that the Bulls will probably look to buy below yesterday’s low in an attempt to get a second leg.
- Yesterday’s bar is good for the Bears, but it’s a relatively weak bear reversal bar compared to last Friday’s bull breakout. This means that the Bears will probably need some second entry before many Bears will be looking to sell.
- The bulls are hopeful that today will form a high one and form a buy signal bar closing on its high. Even if it does, the odds are there will be sellers above the bar, and the upside will be limited.
- Today will likely disappoint the bears. This means that today has an increased risk of closing above the open of the day.
- Overall, the daily chart is still in a bull trend, and therefore, the bears need to continue to make the market go sideways if the bears are going to get a successful reversal down.
E-mini 5-minute chart and what to expect today
- The market gapped down on the open and went sideways for the first 9 bars of the day, forming an expanding triangle open.
- The bulls are trying to get the upside breakout on bar 11. However, they need follow-through.
- At the moment, the odds are the market will go above yesterday’s bar 78 bear breakout.
- Because of the higher timeframe context, the odds slightly favor the bull getting the measured move of the opening range.
- As a bar 11, the market is probably always in long. However, if 12 is a strong bear reversal bar, or if the market goes sideways and forms a second entry, bears will look to sell and bulls will look to exit longs, expecting a pullback. The Bulls are not clearly in control, and therefore, the market may form a trading range and test back to the open of the 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.
