Trading Update: Friday February 20, 2026
E-mini end of day video review
S&P E-mini market analysis
E-mini daily chart
- The daily chart continues to have a lot of trading range price action and is spending a lot of time near the 6900 round number, which is the middle of the tight trading range lasting several months.
- The longer the market goes sideways in the tight trading range, the probability gets closer to 50-50 for the Bulls and the Bears.
- Because the market is in the middle of the tight trading range, this is the worst location for traders to establish positions. This means that most traders are better off waiting for a clear breakout up or down.
- Bears are still hopeful that the market will get a second leg down following the February 12th bear breakout. While the bears might get a second leg down, the most important thing for traders to remember is that the market is going sideways in a tight trading range. Therefore, the probability is close to 50/50.
E-mini 5-minute chart and what to expect today
- Today, the market gapped down on the open, and it formed a bull reversal bar, closing at its high.
- The rally from bars one to three was strong enough for the Bulls to expect a second leg up and a test of yesterday’s high, as well as the bar 77 close on February 19th.
- The report bar on bar seven was a buyback test of bar 77, which closed a few days ago. Because the bar was more than 45 points in size and several times bigger than the average, it increased the probability that the market would go sideways for the next several bars, which it did.
- As of Bar 42, the market has had a lot of trading range price action and will likely continue to have a lot of trading range price action for the rest of the day.
- The bears formed a strong sell-off down to bar 35, and the bulls have a reversal up to bar 42. The bulls are hopeful that they have successfully trapped the bears who sold the close of 35 and scaled in; however, because this is a trading range day, the odds are that those trapped bears will be relieved. This increases the probability that the market is probably going to have to pull back and test back down to the 35 close or the midpoint from the low of 36 to the high of 43.
- Because of all the trading range price action we’ve had today, traders should be open to the possibility of anything.
- Today is Friday, and therefore, weekly support and resistance are important. This increases the risk that the market can form a surprise move late in 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.
