Trading Update: Tuesday April 22, 2025
Emini end of day video review
S&P Emini market analysis
Emini daily chart
- The Emini sold off below the 5,200 round number yesterday. However, it failed to close on its low, creating a tail below the bar, increasing the risk of a bounce.
- The bulls are hopeful that they will form a strong bull reversal bar closing on its high today. This would increase the risk of the selloff down to yesterday’s low, which is two legs down in a trading range.
- The Emini had a big selloff and a big rally during the month of April. This increases the risk of sideways and a trading range lasting several bars.
- The April 9th bull breakout is strong and likely to influence the market. This increases the risk of buyers below and an attempt at a reversal up.
- Overall, the bears will likely be disappointed by the lack of follow-through selling. This increases the risk of bears taking partial profits and the market getting a bounce.
Emini 5-minute chart and what to expect today
- Today, a large gap formed following yesterday’s large selloff. Because yesterday was climactic for the bears, today was likely to be either a bull trend or at the trading range.
- The bulls formed consecutive bull bars with bars 2-3. They are hopeful that this is the start of a bull trend from the open lasting all day.
- The odds are against another trend from the open, which means that today will likely convert into a trading range at some point.
- The bulls have done a good job with the buying pressure on the open. This means that today is unlikely to become a bear trend day, meaning a trading range day is most likely.
Yesterday’s Emini setups
Richard created the SP500 Emini 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 Emini.
Summary of today’s S&P Emini price action
Al created the SP500 Emini chart.
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.
