Trading Update: Tuesday May 19, 2026
E-mini end of day video review
S&P E-mini market analysis
E-mini daily chart
- The daily chart has been climactic for a while. Last week, the market broke out above the 7,500 round number and reversed down strongly on Friday, May 15th. That Friday bar was a strong enough bear bar that it was likely to get a second leg down, but because the bull channel is tight, it was unlikely to go straight down. That is why yesterday was likely to form a disappointing bar.
- Yesterday formed a Bull doji, which is a weak buy signal bar for the bulls and also a disappointment bar for the bears who are selling below last Friday’s low today. The market found sellers near the upper third of yesterday’s high and is getting an implied second leg down after last Friday’s bear breakout.
- The market is getting close to the moving average on the daily chart, and the moving average is a likely support level. The market has been away from the moving average for so many bars that it will likely have to reach it and fall below it. Even if the market finds buyers slightly above the moving average and attempts to reverse up, the upside is likely limited until it can actually reach the moving average.
- Last week, the market formed a strong buy climax up to May 14th. The most recent higher low was made on May 12th. This increased the odds that the market would fall below the May 12th low, which it is currently doing during the U.S. session today. So far, the bears are hopeful that today will form a bear bar closing on its low, breaking out below yesterday’s low. Even if today forms a strong-looking bear bar closing on its low, there will likely be buyers not far below it, willing to buy more below the moving average.
- As far as bulls buying right here, some will buy; however, the odds favor the moving average. Many bulls will be waiting to buy closer to the moving average, and if traders expect the market to reach it, they may be hesitant to buy until it does.
- The rally on the daily chart is strong, and it is a breakout on a higher time frame, such as the weekly chart. This limits the downside potential for the bears, and the bulls who bought at 7,500 will be willing to scale in lower, confident that, worst case, the market will form a trading range and at some point test back to the high close over the next several weeks or months.
- While the bears are trying to get a strong downside breakout, the reality is that it is a minor reversal. The best the bears can likely expect is a trading range until they can form a more credible topping pattern. This means traders will expect a test back to the high close, which is the all-time high, at some point over the next several weeks to months.
E-mini 5-minute chart and what to expect today
- The U.S. session gapped down on the open and went sideways for the first six bars, forming an expanding triangle. The gap down was strong enough for traders to expect at least a second leg down in a test below yesterday’s low.
- While bar 4 broke yesterday’s low below, typically, when the market breaks below a bar, it is common for it to find buyers, pull back initially, and then later try to break below the bar again. Therefore, when bar 6 closed on its low, it was reasonable for traders to sell, expecting a second leg down in a test of the bar 3 close and yesterday’s low.
- The bears got a strong breakout on bar 8 and bar 9, which was likely to get a second leg down. The bulls tried to get a reversal up on bar 11, but because of the five consecutive bear bars, the odds favored sellers somewhere above the bar 11 high. This was likely to limit the upside potential and increase the odds that the bears would get a second leg down.
- The bears got a two-legged pullback — a Low 1 on bar 12 and a Low 2 on bar 15 — and ultimately got a second leg down below the bar 11 low.
- While the bears have done a good job, the bulls continue to increase buying pressure. They had consecutive bull bars on bar 4 and bar 5, and a lot of overlapping bars ever since bar 11 closed. This increases the odds that today will continue to have a lot of trading range price action. If today forms a bear trend, which so far it has, it will likely be a trending trading range type of day. This means every new breakout to a new low will have a lot of sideways trading.
- The bears are hopeful that they can continue the bear channel that began yesterday. However, with all the buying pressure, especially during the second half of yesterday, there are likely buyers below yesterday’s low willing to scale in lower. This means likely bulls are buying around the bar 17 close, betting that the market is at least going to go sideways to up. In the worst case, they can scale in lower and probably make money.
- This limits the energy for the downside and increases the chances that the market will have to pull back and test above the bar 15 high and the moving average over the next several bars.
- Overall, traders will expect today to have a lot of trading range price action. It is reasonable for the market to find buyers below yesterday’s low, which means yesterday’s low will likely be an important magnet for the rest of the day.
Yesterday’s E-mini setups
Richard 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
Richard created the SP500 E-mini chart.
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.
