Trading Update: Friday May 9, 2025
Emini end of day video review
Follow Joseph’s YouTube channel for more Al Brooks price action analysis.
S&P Emini market analysis
Emini daily chart
- The Emini formed a weak high entry bar following the high wind buy on Wednesday. Yesterday, it was shown that bulls were more interested in taking profits above the May 2nd high than buying at that price level.
- This increases the odds that the market will begin to go sideways and continue to form a tight trading range with the past five trading days.
- The bears are hopeful that the market will start to go sideways around 5,700, near the midpoint of the sell-off from the all-time high to the April low.
- The more trading range price action the bears can develop, the greater the risk that the bears get the reversal down.
- Part of the reason the daily chart is going sideways this week is the weekly chart. The weekly chart had consecutive bull bars, testing the moving average, and the odds favored disappointing follow-through for the bulls, which is why this week is trying to form a doji.
- Overall, the odds are that we’ll probably continue to go sideways at this price level, and the market will probably test down to the moving average on the daily chart fairly soon.
Emini 5-minute chart and what to expect today
- The U.S. Open gapped up, forming a small gap and closed within the first 10 bars of the day.
- The bear saw the gap as a pullback from yesterday’s bar at 78, and we’re hopeful that the bears will get a second leg down. The bear successfully got a second leg down to the 14 low.
- The bears are hopeful that the sell-off to 14 is the start of the bear trend and that the market will test a lot lower today.
- More likely today, there will be a lot of trading range price action. And because of the buying pressure from bar 1 to bar 8 on the open, there’s added risk that the sell off down to 14 will lead to a trading range and not the start of the bear trend.
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.
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 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 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.
