Trading Update: Friday May 22, 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 up for the past several months and is currently testing back to the May 14 high close.
- May 20 formed a bull reversal bar, and yesterday the bulls got a follow-through bar.
- Because the channel up is tight, the odds of the bears getting a strong reversal down are limited. This increases the risk that there will be buyers below today’s low and that the market may try to rally on the open to test the May 14 high close.
- At the moment, the odds favor the market going above the all-time high and then testing back down to the moving average.
- The market has been away from the moving average for so many bars that the odds favor a test of it fairly soon, but there will likely be buyers there.
- The bears realistically need more selling pressure if they are going to start taking control.
- The tight channel up on the daily chart is a breakout on a higher time frame, such as the weekly chart, which means any reversal down will likely find buyers.
- Even if the market breaks below the moving average and 7,300, there will likely be buyers not far below it.
- Even if the market sells off to 7,000, it will likely form a higher low in a large trading range and try to test back up to the all-time highs.
- Overall, the bulls are in control, and therefore the downside is likely limited.
E-mini 5-minute chart and what to expect today
- The E-mini gapped up on the open and formed a follow-through bar on bars 1 and 2, which increases the odds that the bulls will try to get a second leg up.
- The gap up was about 48% of the average daily range, so the day’s range is likely set, which increases the odds of a measured move based on the opening range by around bar 9.
- The bears got a sell-off in an opening reversal from the bar 3 high, which is good for the bears.
- The market is still at support based on the moving average and at the bottom of the breakout bars 1 and 2.
- The bears need to break far below the bar 1 low and the moving average to convince traders they are taking control.
- Otherwise, the market is probably evolving into a trading range, and there will likely be buyers around the bar 9 low.
- Bars 9 and 10 are forming a low 1 short, but they are also a possible parabolic wedge bottom with bars 5, 8, and 11, which reduces the odds of a successful downside breakout without a trading range first.
- While the bears are trying to get a strong breakout below the bar 8 low on bar 11, they need to do more. At the moment, the odds favor a trading range open, which means the market will probably have to bounce to relieve the trapped bulls.
- Less likely, the bears form a strong downside breakout below bar 8, forcing the bulls to give up and leading to a sustained sell-off.
- Today is Friday, so weekly support and resistance are important. The weekly chart is currently forming a bull bar, and the bulls are hoping it closes on its high as a high 1 buy signal bar at today’s high of 7,516.25.
- However, today is probably not going to close on its high, and the bears will likely create some kind of tail above the bar’s high, disappointing the bulls.
- Because of the sell-off from the bar 3 high to the bar 11 low, today is unlikely to be a strong bull trend day, but because of the buying pressure from the gap up on the open and the consecutive bull bars on bars 1 and 2, the odds are also against a strong bear trend day.
- This increases the risk of a trading range because the bulls got trapped buying the bar 2 close, and some will buy more below bar 1 and the moving average.
- This increases the risk that bar 11 leads to a parabolic wedge and a reversal attempt back above the bar 2 close.
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.
