Trading Update: Tuesday May 27, 2025
Emini end of day video review
S&P Emini market analysis
Emini daily chart
- The Emini sold off to the moving average last Friday and stalled, forming a bull bar closing at its midpoint.
- The moving average was a likely magnet for the market’s test. However, there will probably be buyers, and it will act as support.
- The 6,000 round number is still a likely magnet for the market’s test, and therefore, the market will probably be unable to escape it.
- The market came within 15 points of the round number. However, that is probably not a close enough test, and the market will likely have to move beyond the $ 6,000 round number fairly soon.
- The daily chart is getting a gap up today, and the bulls are hopeful that this is the start of the test that will go beyond the 6,000 round number.
- The Bulls are hopeful that today is a bull bar closing on its high. The Bears don’t mind a rally as long as it forms a double top with the May high and leads to a break below the neckline of last Friday’s low, followed by a measured move down.
Emini 5-minute chart and what to expect today
- Today, the gap down formed a bull trend from the open with the bar 2.
- The bulls formed a strong rally up to the bar 12 high, and now the market has been going sideways for the past 6 bars.
- The rally up to bar 12 is strong enough that the odds favor a second leg. However, the market is far from the moving average, and that increases the risk that the market may have to pull back or go sideways to get closer to the moving average.
- The Bulls are hopeful that today is a bull bar closing on its high, which would create a strong bull breakout bar on the daily chart and increase the odds of a second leg up.
- The bears want to prevent this. They aim to create a large tail above the bar, which will cause disappointment for the bulls.
- The market is always in one of two modes: long or short. Because of the bull rally from the open, the odds are that today will be a bull trend or a trading range.
- This means that there are probably buyers willing to scale in lower at the moving average, betting on a second leg up.
Pre-holiday Emini setups
Richard created the SP500 Emini chart – Al travelling.
Here are reasonable stop entry setups from last Friday, before US holiday break. 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 chart.
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 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.
