Trading Update: Wednesday June 3, 2026
E-mini end of day video review
S&P E-mini market analysis
E-mini daily chart
- The E-mini has been in a tight bull channel for several bars above the moving average and has formed nine consecutive bull bars on the daily chart, with the bodies getting smaller far from the moving average at the 7,600 round number.
- This increases the probability that today will close below the open, and with yesterday closing near the high of its range, the odds increased that today would sell off.
- So far, today is forming a bear bar closing on its low.
- The bears are hopeful that today is a reversal bar that will lead to follow-through selling and a test down to the moving average, as well as the May 19 most recent higher low.
- Because the channel up is tight, the downside risk for the bulls is likely limited, and the odds are against the market selling off strongly and breaking far below the moving average and the May 19 low.
- Overall, because the market is climactic on the daily chart, traders will expect a couple of legs sideways to down and a test of the moving average at a minimum.
- Bulls exiting around this location are likely going to be unwilling to buy without first seeing a test of the moving average.
- The bears are hopeful that tomorrow will form strong follow-through selling, assuming today closes on its low; however, it is more likely that there will be something wrong with tomorrow’s follow-through bar.
- If the bears are lucky, today will close on its low and tomorrow will form a strong follow-through bar, increasing the odds of a second leg down.
- Because the market is in a tight bull channel, traders should assume that, just like the bears who sold after May 15, the bears will likely be disappointed with the current sell-off as well.
E-mini 5-minute chart and what to expect today
- Today gapped down on the open and sold off, forming strong consecutive bear bars on bars 3 and 4; however, bars 3 and 4 were large, which increased the probability of a pullback and lowered the probability of the market falling for a measured move based on bars 3 and 4 without first pulling back.
- The bulls managed to get a rally from bar 5 to bar 9, but it formed a parabolic wedge.
- Because the market was in a micro channel, there were likely buyers below the bar 9 low, and the bulls got two attempts to break out above the bar 9 high by bar 14.
- On bar 15, the market formed a small wedge top near the moving average — you can also call it a double top with bars 10 and 14.
- It was reasonable for the bears to sell below bar 15, taking a chance that the market would test back down to the bottom of bar 4 close.
- The bears managed to form a tight channel into a new low of the day below bar 5.
- Because of the buying pressure on the way down from the channel that ended at bar 39, there were likely buyers below willing to scale in lower, which increased the probability that traders would buy above bar 36 and buy more above bar 39.
- Bar 39 is a second-entry buy, and bar 40 is a reasonable entry bar for the bulls, which increases the odds that the bulls will get some kind of second leg up.
- The bulls are hopeful that this will lead to a possible low of the day; however, because of all the bars below the moving average, the bulls may need a more credible Major Trend Reversal.
- For always-in bears, it is reasonable to get out below bar 39 or bar 40, betting that the bulls will get some kind of second leg up.
- Today is unlikely to remain a strong bear trend lasting all day and will therefore likely remain some kind of trending trading range day.
- Even if today closes near its low, creating a strong entry bar on the daily chart, as of bar 39, traders should assume that the market is probably going to try to rally for a couple of legs sideways to up, which increases the probability of a trading range rather than a bear trend lasting all day.
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.
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.
