Trading Update: Friday May 30, 2025
Emini end of day video review
S&P Emini market analysis
Emini daily chart
- The Emini formed a bear outside bar yesterday. This is a sign of disappointment and increases the risk of more sideways trading.
- The bulls still have the magnet of the 6,000 – a big round number, not far above, and the market will probably get there.
- Some Emini may sell before the 6,000 round number, but the reality is that a lot of traders will wait due to it being an obvious magnet.
- The Bulls are hopeful that the past two trading days are a pullback and that they will be able to get a measured move up and a test above the May high.
- Because yesterday is a week stop and resale below the odds are today, it’s going to be a disappointment bar for the bears. The Bulls are hopeful that today will close on its high, increasing the chances that next week will reach 6,000.
- The Bears are doing a good job getting bear bars, but they have not done enough yet, and therefore, the odds favor higher prices.
Emini 5-minute chart and what to expect today
- Today sold off for the first 5 bars of the day, testing yesterday’s low and finding buyers.
- The sell-off down to bar 6 looked like a bear leg in a trading range, and bars 7 and 8 were strong enough to make the market Always In Long.
- The rally up to bar 14 is strong enough that there are probably buyers on any initial reversal down.
- Today is Friday, and therefore, weekly support and resistance are important. One likely magnet is the midpoint of the week. Bulls want to close above it. Bears want to close below it.
- Because of the rally on bars 7 and 8, and the strong reversal up from the bar 5 low, today is likely to be a bull trend or a trading range day, and not a bear trend.
- We still have the magnet of breakout points below, such as the four high and the six high. And because the market is in a trading range, there is an increased risk that the market could decline and test those lows if the bears develop sufficient selling pressure.
- The risk is real that the Bulls face a deeper pullback than what they would like. The sell-off to bar 5 lasted several bars, and the reversal on 15 is strong enough for a second leg down. This increases the risk of a 50% pullback.
Yesterday’s Emini setups
Al created the SP500 Emini chart.
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
Richard created the SP500 Emini chart – Al travelling.
EURUSD Forex market analysis
EURUSD Forex daily chart
- The EURUSD is continuing to go sideways near the midpoint of the April rally and the May sell-off.
- The bears are hopeful that the market will form a lower high with the April high, and the bulls want a test above the April high.
- Yesterday formed an outside up bar. However, the problem with the outside bar is that it’s in the middle of a trading range, and therefore buying above yesterday’s outside bar is a low-probability trade with significant risk, and hence it’s not a great trader’s equation.
- This is why the market pulled back today. Some bulls may look to buy a 50% pullback of the outside bar, but even then, it’s still not a great buy.
- Because of the rally up to the April high, the odds slightly favor a test up to the April high. That makes me think that the odds are we’ll probably go higher.
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.
