Trading Update: Friday July 10, 2026
S&P E-mini market analysis
E-mini daily chart
- The daily chart of the E-mini formed a strong buy signal bar closing on its high, inside the prolonged triangle that began back in the middle of May.
- The market is forming a contracting trading range, which is breakout mode.
- When the market is in breakout mode, the odds are close to 50-50 for the bulls and the bears.
- The rally from the April low up to the June high was strong, and the higher time frame is bullish.
- The odds are that the bulls are going to get the upside breakout of the triangle and reach the all-time high that was made back in late May.
- Even so, the risk is real that whatever breakout the market gets above the all-time high will likely fail, and it will start to go sideways again soon.
- Even if the market fails to break out above the all-time high and sells off back to the June low around 7,300, there will likely be buyers not far below it.
- This is because the higher time frame context is bullish, which lowers the probability of the bears getting a strong downside breakout.
- Overall, the daily chart is likely to have a lot of trading-range price action, and this increases the risk that whatever breakout we get at the all-time high will be limited and lead to more disappointing, sideways trading.
E-mini 5-minute chart and what to expect today
- The E-mini gapped up on the open and went sideways for the first 12 bars of the session.
- The market formed a wedge top, with yesterday’s bar 6, yesterday’s bar 50, and then today’s bar 7 as the three pushes up.
- This is because the higher time frames, such as the 60-minute chart, have been in a bull channel for some time inside a larger, long-term trading range.
- Because of that, there was increased risk that there would be sellers around the 7,600 round number.
- Bar 13 formed a very big bear bar.
- However, it had a large tail below it, and because it was a 50-point bar, that increases the risk that today is going to have a lot of sideways trading.
- Whenever the market gets an exceptionally large bar, it is important to be careful, because that is a sign of trading-range behavior and it increases the risk of a lot of sideways trading.
- Bar 13 is enough of a surprise to the downside that the upside is probably limited for the next several bars.
- Overall, traders should expect a lot of trading-range price action, especially because today is Friday.
- Weekly support and resistance are important, and that increases the risk that today may have a surprise breakout up or down as traders decide on the close of the weekly chart.
- So far, because of bar 13, the market is likely Always In Short.
- However, because of the tail below the bar, there are likely buyers near the bottom third of bar 13.
- This means that a trading range is more likely than the start of a strong sell-off or a strong rally.
Yesterday’s E-mini setups
Jed created the SP500 E-mini chart.
Here are reasonable stop entry setups from yesterday. Chart shows each buy entry bar with a green arrow and each sell entry bar with a red arrow. Buyers of the Brooks Trading Course have access to a near 4-year library of detailed explanations of swing trade setups (see Online Course/BTC Daily Setups) linked to the Brooks Encyclopedia of Chart Patterns product.
The 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 E-mini.
Summary of today’s S&P E-mini price action
Jed created the SP500 E-mini chart.
E-mini 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 E-mini price action real-time each day in the Brooks Trading Course trading room. We offer a 2 day free trial.
Charts use Pacific Time
When times are mentioned, it is USA Pacific Time. The E-mini 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.
