Trading Update: Thursday May 21, 2026
E-mini end of day video review
S&P E-mini market analysis
E-mini daily chart
- The E-mini on the daily chart has been in a tight channel for many bars and has pulled back to the moving average over the past three days.
- It came close to the moving average before finding buyers yesterday and reversing up, forming a bull bar that closed on its high.
- The bulls expect a second leg up after yesterday’s close and a test back to the May 14 high close.
- One problem for the bulls is that the E-mini will likely need to test the daily moving average fairly soon, which limits the upside potential.
- Today will probably form a disappointment bar for both the bulls and the bears.
- Even if the bears generate poor follow-through for the bulls, buyers will likely emerge below today’s low, raising the odds of a second leg up.
- Overall, the E-mini is likely to go sideways for the next several bars as the market gets closer to the moving average.
- The odds favor a test of the daily moving average and a test of the all-time high, which is the May 14 high; overall, however, the odds favor sideways trading.
E-mini 5-minute chart and what to expect today
- Today gapped down at the open and traded sideways for the first three bars.
- That sideways action led to an upside breakout on bar 5, followed by three consecutive follow-through bars.
- Bar 8 was a high 1 buy, but given the trading range price action, the market pulled back deeply to the bar 11 low.
- At this point, the market had formed big up, big down price action, increasing the odds of sideways trading.
- The bears who sold the close of bar 11 endured a deep pullback before ultimately getting a second leg down below the bar 4 low, where buyers emerged. The bulls who bought around bar 7 and scaled in lower were ultimately able to exit without a loss near bar 32.
- Today has had extensive trading range price action and is forming a triangle — a breakout mode pattern — as the market decides on the direction of the breakout.
- In general, there is a 50 percent chance the initial breakout succeeds and a 50 percent chance it fails and reverses.
- With this many sideways bars, the odds favor continued trading range price action 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.
