Trading Update: Wednesday February 19, 2025
Emini end of day video review
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S&P Emini market analysis
Emini daily chart
- Yesterday, the Emini created an outside up bar. This is a continued disappointment for the bulls and increases the odds of more trading range price action on the daily chart.
- The bulls are hopeful that the past two trading days are enough follow-through after last Thursday’s bull breakout of the two-week triangle.
- The market is close enough to the December All-time High that it may be unable to escape the gravitational pull. This means that the market will probably have to reach it over the next several trading days and decide if more buyers or sellers are above it.
- The bears do not mind a test of the December high as long as the market forms a higher high major trend reversal.
Emini 5-minute chart and what to expect today
- The U.S. Session gapped down on the open and has gone sideways for the first 6 bars, which is common.
- The bears are trying to get a downside breakout of the tight trading range and a second leg down based on the gap with bar 7. However, bar 7 has a tail below the bar, slightly lowering the probability.
- The market is probably Always Short with bar 7, but they do not buy much. If the Bulls get a reversal up on bar 8, closing near it’s high, that will probably be enough to convince Always In Bears to exit above.
Yesterday’s Emini setups
Al created the SP500 Emini charts.
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 charts.
EURUSD Forex market analysis
EURUSD Forex daily chart
- The EURUSD formed a bear bar yesterday, closing near its low. These bears hope they will successfully be able to trap the bulls who bought the February 17th low.
- Next, they want today to form another bear bar closing on its low, leading to a possible 2nd leg trap with the February 14th high. If the bears can create a 2nd leg trap, that would increase the odds of a test of the February 10th higher low.
- The bulls will see the rally up to February 14th as strong enough to lead to a test of the January 6th high.
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 BrooksPriceAction.com trading room days. 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.
