Trading Update: Monday July 6, 2026
S&P E-mini market analysis
E-mini daily chart
- The daily chart of the E-mini continues to go sideways, forming a triangle.
- The bulls had a reversal and follow-through on June 29th and June 30th that was strong enough to increase the odds of a second leg up.
- Right now, the bulls are trying to get an upside breakout and a test of the June 15th lower high.
- Ultimately, the bulls want to break out above the June all-time high, which they will probably get.
- The market on the daily chart is currently more bullish than bearish.
- That increases the odds that the triangle will get an upside breakout because of the overall context on the higher time frames.
- A trading range is more likely than a continuation of the bull trend, which means the daily chart is likely to go sideways for many bars over many months.
- Realistically, with all the buying pressure on the higher time frames, the bears need to make the market go sideways if they are going to get a reversal down.
- The best the bears can ultimately expect on the daily chart is a trading range lasting for several months.
- There are likely buyers willing to scale in lower, which means that even if the market falls below the June 10th low, there will likely be buyers not far below it.
E-mini 5-minute chart and what to expect today
- The E-mini gapped up on the open and went sideways for the first eight bars, forming a triangle.
- Because of the gap up on the open, the odds favored a second leg up and the development of a channel higher.
- The bulls then got a gap-up pullback that developed into a channel higher, which carried the market up to the 36 high.
- The bull breakout on bar 9 was strong enough, and because it broke out of the triangle, it was likely to get a second leg up, which the bulls got to the bar 13 high.
- The rally from the bar 7 low to the bar 13 high was strong enough to find buyers below, which the bulls found on the pullback on bars 14 and 15.
- So far, as of bar 35, the market has formed a small pullback bull trend, which shows that the bulls have remained in control of the intraday chart.
- Because of that, the channel is tight, which means traders need to be cautious about selling.
- Traders who are selling here are more likely to get trapped by the sideways trading, since the market keeps holding in a tight range instead of breaking down.
- This means that the best the bears can realistically expect from here is sideways trading rather than a strong reversal down.
- Right now, it is very difficult for short-term bears to make money, because the market is not giving them the strong downside follow-through that they need.
- Because of that, bears should be cautious about looking to sell, and they should wait for stronger evidence before pressing the downside.
- The best case for the market is that it will likely continue to go sideways for several more bars before it finds clear direction.
- This limits the downside potential and increases the odds that the market will form a trading range.
- Overall, traders should expect sideways trading as the best case for the bears, unless they can start to get strong closes below the moving average.
Friday’s E-mini setups
Jed created the SP500 E-mini chart.
Here are reasonable stop entry setups from last Friday (before US Independence day holiday. 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.
