Trading Update: Wednesday July 1, 2026
S&P E-mini market analysis
E-mini daily chart
- • The daily chart of the E-mini is forming a triangle after the recent trending channel, which means the market has shifted from a strong directional move into a period of two-sided, sideways trading.
- • A triangle is a contracting trading range in which the highs and lows gradually converge, and this one has already lasted for many bars. This makes the market closer to neutral. Because the rally up to the June All-Time high is strong, the odds favor a rally and test of the June high.
- • The consecutive bull bars over the past two trading days is good for the bulls. This increases the odds of a 2nd leg up.
- At the moment, the daily is likely Always In Long and likely to get a second leg up. This increases the risk that bears will wait to see what kind of 2nd leg up the bulls can create before looking to sell.
E-mini 5-minute chart and what to expect today
- • The pre-market gapped down on the open and sold off, forming a bear bar that closed on its low. However, that bear bar was testing the 60-minute moving average, and the bar was large.
- • In general, traders are going to be less willing to sell. When you get a breakout bar that is large on the open, it usually leads to an opening reversal, because most of the time you get a trading range open and not a trend from the open. This lowered the probability of the bears selling below bar one, especially since it was at support.
- • The bulls got an opening reversal with bars two, three, and four, and the market broke to the upside strongly in bars five and six. This increased the odds of the bulls getting a second leg up.
- • The bulls got a micro channel from the bar 2 low up to the bar 12 high that was strong enough to create buyers below, and the market then formed a two-legged pullback with bars 13 and 16. The market reversed up, forming an almost symmetrical second leg to bar 24.
- • Bar 24 was a strong enough rally that there were likely buyers on the first reversal down, and there were buyers below bar 25. However, the retest of the bar 24 close up to bar 35 formed a weak parabolic wedge top, and the bears ended up forming a credible failed breakout of the bar 24 high and a higher-high Major Trend Reversal.
- • The bears got a strong enough reversal down to bar 42 that it was reasonable for the market to go sideways and form a trading range.
- • As of bar 60, the bears are getting a channel down and a second leg from the sell-off to bar 42, with many bars below the moving average. However, because today is likely to form a trading range with all the overlapping bars, that lowers the probability that the market will break strongly to the downside and increases the risk that it will stay sideways around the bar 60 close.
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.
