Trading Update: Tuesday May 27, 2026
S&P E-mini market analysis
E-mini daily chart
- The daily chart of the E-mini has continued to form a tight bull channel, and the strength of that channel increases the probability that any reversal down is more likely to go sideways than to fall sharply.
- The bears almost reached the moving average with the sell-off down to the May 19 low, but buyers stepped in, and the market tested back to the previous all-time high on May 14 and broke above it today.
- The bears ultimately need to increase the selling pressure, and while making the market go sideways is a start and is good for them, they need to do more.
- Even if the bears get the moving average, which the odds favor, a trading range is still more likely because the market has been away from the moving average for so many bars.
- The odds still favor a test of the moving average.
- The bears are hopeful that today will form a failed breakout above the all-time high and close on its low, while the bulls obviously want the opposite.
- Today is probably not going to close on its low, and even if it closes around the midpoint of the bar, it will still be disappointing for the bulls.
- Traders will see today as a possible failed breakout above the May 14 highs because the market has been in a micro channel over the past 3 days.
- The downside risk is probably limited below today’s low.
- Overall, the odds favor continued sideways trading as a test of the moving average.
- The recent test on May 19 is probably not a close enough test for traders to agree, so the market will probably have to trade back down and reach the moving average on the daily chart.
E-mini 5-minute chart and what to expect today
- The market gapped up on the open and formed a bear bar on bar 1. However, it was a sell climax on the Globex chart, which increased the risk of buyers below the bar 1 low.
- Bar 2 formed an opening reversal but failed to close on its high, and because of the gap up, the odds favored at least a second leg, which followed as price went above the bar 1 high.
- Bars 3 and 4 were a strong enough bull breakout with follow-through that the odds favored a second leg up and buyers on a pullback, which increased the risk that there would be buyers on bar 5 willing to scale in lower.
- With bar 5 having a deep pullback for the bulls, that increased the probability that the upside would be limited.
- With the market testing above the all-time high from May 14, that also increased the risk that there would be sellers around the 7,550 price level.
- The market formed a parabolic wedge with bar 16, and it was reasonable for the bulls to exit, expecting at least a couple of legs down.
- The bears got an endless pullback in a bear breakout on bar 19 that was likely to get a second leg down.
- Although the bears did a good job with bar 19, the downside was likely limited, and the closer the market reached to the bar 2 low of the day, the more likely it was to find buyers.
- The bears got a strong breakout on bars 27, 28, and 29; however, they failed to get a strong breakout with solid follow-through below the bar 2 low and ended up forming a parabolic wedge bottom.
- The bulls got a reversal on bar 30 that was a strong enough full reversal bar that it increased the probability of the market forming a trading range and going sideways as far as bar 45.
- The bulls have built enough buying pressure that there is increased risk the market may test back to the 7,540 price level, which is near the midpoint of the day’s range.
- Overall, today is likely to continue to form a trading range and is unlikely to get a measured move down based on the opening rally up to bar 15.
Last Friday’s E-mini setups
Richard created the SP500 E-mini chart.
Here are reasonable stop entry setups from last Friday (before Monday bank holiday). 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.
