Trading Update: Tuesday October 14, 2025
S&P E-mini market analysis
E-mini daily chart
- The E-mini formed a large bear breakout last Friday on the daily chart. This is a strong enough bear breakout that it’s likely to favor a second leg down, with the first reversal of the breakout being sold.
- The breakout was extreme and climactic; therefore, the odds favored the market getting a bounce on Monday, which it did.
- Because the breakout was large and likely to influence the next several days, it was reasonable for traders to sell any pullback of Friday’s bear breakout, betting on at least a test of last Friday’s close, which was retested early this morning.
- The daily chart has been in a bull channel for several months. The odds have favored a transition into a trading range.
- Because of how strong last Friday’s bear breakout was, the odds are that this bull channel is now transitioning into a trading range. This means the odds favor a test of major higher lows, such as the September 2nd low.
E-mini 5-minute chart and what to expect today
- Today formed a large gap down, testing last Friday’s close. And sold off for the first three bars of the day.
- Because the market was testing necessary support, and the gap down was fairly large, the odds favored an opening reversal, which the bulls got on bar 4.
- The Bulls managed to get a strong reversal up to bar 12, which increased the probability that today was likely to form a bull trend or a trading range day.
- The Bears have done a good job from bars 13 to 26, making the market go sideways; however, they need to do more than what they have done if they are going to get a reversal back down to the open of the day.
- At the moment, the rally up to bar 12 is strong enough for a second leg, and the market will probably go above the 20 high.
Yesterday’s E-mini setups
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
Richard created the SP500 E-mini chart – Al travelling.
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 Trading Course 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.
