Trading Update: Tuesday July 22, 2025
E-mini end of day video review
S&P E-mini market analysis
E-mini daily chart
- Yesterday, the Emini formed a doji reversal bar, which is a weak follow-through after the July 17th upside breakout.
- The July 16th stop entry buy is a weak bull signal bar, late in a bull channel inside of a tight trading range. This increases the risk of sellers above, and price testing back to the July 16th high. This would allow the limit order bears selling above the July 16th high to make money.
- The market has been away from the moving average for a lot of bars after reaching a new all-time high. This increases the chances that the market will go sideways for several bars and drop down to the moving average.
- The daily chart is probably converting into a trading range, which means that breakout points are going to get tested and closed. This is due to limit order bears selling above bars and bulls taking profits as the market goes to new highs.
- For the bears to get a strong reversal down, they need a series of strong bear bars, and ultimately, they need selling pressure below the moving average. Without more selling pressure by the bears, the best the bears can hope for is a trading range with the July 16th low.
E-mini 5-minute chart and what to expect today
- Today went sideways on the open and got a strong bear breakout on bars 4 and 5. While the bear breakout with follow-through is strong, the bars are exceptionally big compared to the bars to the left. This is climactic behavior and increases the risk of sideways trading.
- The Bears are hoping that bars 4 and 5 are a measuring gap that leads to a measure move down. While this is possible, it’s more likely to lead to a trading range.
- This means that the odds favor an attempt at a reversal up and a test of the midpoint of the bar 4 and 5 breakout bars.
- Bars 12 and 13 are allowing too much buying pressure following a second entry short for the Bears. Bulls are hopeful that they can get a measure move up from the five low to the 10 high, projecting up to near the one low.
- Because of bars 4 and 5 being strong, the odds are it’ll probably get at least a second leg down, meaning price will probably fall one tick below 5.
- But the more bull bars the bulls can accumulate, the more likely the second leg will lead to a trading range.
- With the selling pressure on the open, today is likely to be a bear trend or trading range day, and not a bull trend day.
- As far as traders buying around bar 13, most traders are better off waiting to see more buying pressure. This is due to the risk that bars 4 and 5 will get some kind of second leg down.
- The Bulls will see bars 4 and 5 as consecutive sell climaxes after yesterday’s sell-off from the 49 high.
Yesterday’s E-mini setups
Brad created the SP500 E-mini charts – 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
Brad created the SP500 E-mini charts – Al travelling.
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.
