Trading Update: Friday February 7, 2025
Emini end of day video review
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S&P Emini market analysis
Emini daily chart
- The Emini gapped up yesterday and formed a small bull doji bar on the daily chart. This is a sign of weakening buying pressure and increases the odds of a pullback within the next few trading days.
- Because the rally is in a bull micro channel, the odds are there will be buyers below, and the downside will likely be limited.
- The bears are hopeful that today will form a strong bear reversal bar closing on its low. Next, the bears want a strong entry bar closing on its low. This would trap the limit order bulls buying below the first pullback and increase the odds of a 2nd leg down.
- Overall, the daily chart is likely to pullback. However, because the bull micro channel is strong, the odds favor buyers below and a second leg up.
Emini 5-minute chart and what to expect today
- The Emini gapped up and rallied and formed an opening reversal at the bar 5 high. The rally had several overlapping bars which increased the odds that it was a bull leg in what was likely to become a trading range.
- Bar 7 was a strong enough bear breakout that the odds favored a 2nd leg down, which they got on bar 17.
- The reversal up on bar 18 is strong enough that the odds favor buyers near the bar 17 close and the formation of a trading range. this means that the market may test back to the bar 13 price level.
- While the selling pressure has been strong, it is in the form a large climactic bear breakout bars that lack immediate follow-through. This increases the odds that today will convert into a trading range and not remain a bear-trend day.
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.
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.
