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Emini Bulls Testing Top of July Rally

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Trading Update: Thursday August 7, 2025

S&P E-mini market analysis

E-mini daily chart

  • The Emini rallied, forming a bull bar closing on its high, reversing Tuesday’s bad Low 1.
  • Today is finding sellers on the open, this is due to the market testing resistance, the upper 1/3rd of the August rally.
  • The sell-off below the moving average last week was good for the bears, but it was not enough to undo the bull trend. This increased the odds of a trading range being more likely than the start of a bear trend.
  • The Bears realistically have to make the market form a trading range before they will have any chance of getting a strong reversal down. This is because the bulls will likely be able to buy the July rally and then scale in lower and make money.
  • The Bears are doing a good job of increasing the selling pressure and creating bear bars closing below their midpoints. They need to continue to make the market go sideways and increase the selling pressure.
  • So far, the Bears don’t have enough of a trend line break to classify this as a possible major trend reversal. This means that whatever reversal we get will probably be minor and lead to a trading range.

E-mini 5-minute chart and what to expect today

  • The market gapped up on the open and reversed down with bars 7 and 8.
  • The bar 8 breakout was strong enough that the odds favored lower prices and a second leg down, making the market Always In Short.
  • This increases the odds that the reversal upon bar 12 was likely to find sellers above.
  • The sell-off down to bar 21 was in a tight bear channel, which increased the odds of sellers above. The problem that the bears are facing is that the market is forming consecutive lower highs and lower lows, which increases the odds of sideways trading for several bars.
  • The sell-off down to 24 is strong, and even if we go sideways for several bars, the odds will still favor trend resumption by the bears.
  • If the Bulls are going to get a reversal, they need to do more than what they’ve done so far. At a minimum, you’ll need to get a trend line break into retest of the lows, creating a credible double bottom. More likely, any reversal the bulls get will be a bull leg in a trading range instead of a bull trend.

Yesterday’s E-mini setups

SP500 Emini 5-Min Opening Range DB Then Bull Breakout and Trading Range

Richard created the SP500 E-mini chart – Al travelling.

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

SP500 Emini 5-Min Small Pullback Bear Trend Then Late Reversal

Al created the SP500 E-mini chart.

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 Price Action 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.

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