Trading Update: Tuesday February 24, 2026
S&P E-mini market analysis
E-mini daily chart
- The daily chart of the E-mini is continuing to go sideways in the tight trading range. The Bears tried to get a reversal down yesterday, and they were hopeful it was the start of the second leg following the February 12th downside breakout.
- Whenever you get a breakout in a trading range, it’s common for there to be a prolonged pullback that leads to a delayed second leg. This is what the Bears were trying to achieve over the past two days.
- With yesterday’s breakout having a tail below the bar, that increased the probability that there’d be buyers below yesterday’s low.
- The Bulls are trying to get a strong bull reversal bar closing on its high. The Always In bulls are hopeful that traders will buy above today’s outside up bar, especially if it closes on its high.
- While some bulls might buy above it. Look at every large trend bar up and down so far over the past several weeks. Most stop orders up and down have led to disappointment in trading range price action. This increases the risk that even if today does close on its high, there will likely be sellers somewhere above the bar.
- The bulls are hopeful that today will close on its high and tomorrow will be a strong entry bar closing on its high with little overlap. More likely, there will be something disappointing with tomorrow, as it is a follow-through bar, assuming today is the bull bar closing on its high.
- Because of the overall higher timeframe being bullish, the odds slightly increase the probability of the market testing back up to 7,000, the round number.
E-mini 5-minute chart and what to expect today
- Today’s gap down in the open informed a strong outside up bar after the failed breakout below yesterday’s low. Bar 2’s outside up bar and bar 3’s strong follow-through increased the odds of a possible bull trend and a second leg up, which the bulls got to bar 12.
- The market has gone sideways from bars 13 to 31. With the increased selling pressure and Bears making money below bars, the odds are that the market’s probably going to evolve into a trading range. This is also the middle of the day, and that’s an area where the market tends to go sideways and allows the market to decide on trend resumption or trend reversal.
- If the Bears do get the reversal down, a trading range is more likely than an opposite trend, and this means there will probably be buyers below previous higher lows. Right now, the market is continuing to make higher lows and higher highs, and therefore, today is a bull trend. Many traders will see it more as a bull trending trading range day. That increases the odds that the market will go sideways for several bars.
- Because of the selling pressure down to bar 25, the odds are the rally up to bar 31 will likely find sellers, and the market will continue to go sideways and close open micro gaps.
- If the Bulls are lucky, the market will go sideways for several bars, and the Bulls will get a rally into the close, creating a bull trend bar closing on its high. As a bar 31, today’s range is already getting large, and that increases the odds that the upside is probably going to be limited.
- If the market continues to rally around bar 32, that will increase the probability that we get a sell-off later in the day, creating a tail above the bar on the daily chart.
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.
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.
