Trading Update: Tuesday May 20, 2025
Emini end of day video review
S&P Emini market analysis
Emini daily chart
- The Emini formed an outside up bar and rallied close to the 6,000 big round number. However, it found profit taking and sellers 10 points away from the round number.
- The bull channel is tight, increasing the odds that the first reversal will be minor and find buyers.
- The Emini is so close to the round number that the odds favor a test of the 6,000 magnet over the next couple of days.
- The problem the bulls continue to face is that the current price level is far from the moving average. This will increase the odds of a pullback lasting a couple of legs.
- At a minimum, with the market being far from the moving average, there is increased risk of sideways trading, which would drag the moving average up to the current price level.
Emini 5-minute chart and what to expect today
- Today formed a tight trading range for the first 20 bars of the day. This is enough trading range price action that the odds favor a lot of sideways trading today.
- As for bar 24, the market is in breakout mode.
- The odds favor a measured move up or down based on the opening range.
- Yesterday was an outside up bar, which increases the risk that today may end up forming an inside bar.
- Traders should be cautious with all of the trading range price action we have had today. This means that traders should wait for a clear breakout with follow-through if they want a higher probability trade.
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 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.
