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Emini Large Gap Down on Open

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Trading Update: Thursday April 3, 2025

S&P Emini market analysis

Emini daily chart

  • The Emini formed a large gap down on today’s open and is creating a 2nd leg down from the March 25th high. The recent selloff is becoming extreme,, which increases the odds of a bounce as bears begin to take partial profits.
  • The bears are hopeful that today is a successful breakout of the two-week trading range, which will lead to a 2nd leg down.
  • While this is possible, it is more likely that today is not going to find profit-taking by the bears. The risk for the bears means they will have to reduce their position, leading to a bounce.
  • The bulls are hopeful that the breakout below the March 31st low will find buyers and lead to a reversal up. The bulls will attempt to overwhelm the bears at this price level, aiming for a strong bull reversal bar that closes on its high.
  • The bears will try their best to get a close on its low, or at least a close below the midpoint of the day.

Emini 5-minute chart and what to expect today

  • Today’s open formed a huge gap down and sold off to bar 11.
  • The bears are hopeful that today will remain a strong bear trend day for the rest of the day.
  • While this is possible, the market is already down 230 points on the day. This is very extreme and increases the risk of profit taking and the formation of a trading range.
  • Because of the extreme selling today, there is an increased risk of today forming a rally as bears begin to take partial profits.
  • Because selling is strong, traders have to be prepared for the market to go a lot lower today, potentially. While this is unlikely, it is certainly possible.

Yesterday’s Emini setups

SP500 Emini 5-Minute Chart Small PB Bull Trend from Open

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

SP500 Emini 5-Minute Chart Bull Trap Then Parabolic Wedge Bottom

Al created the SP500 Emini charts.

Emini 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 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.

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