Trading Update: Friday March 6, 2026
E-mini end of day video reviews
S&P E-mini market analysis
E-mini daily chart
- Today gapped down, forming a doji bar on the daily chart near the March 3rd low. Bears are hopeful this will lead to a successful downside breakout.
- The problem for the Bears is that the March 4th Low 1 short is a bull bar closing above its midpoint. This increases the odds that there are buyers below the bar scaling and lower.
- Next week, we’ll probably bounce and test back up to the March 4th low, allowing the scaling bulls to make money.
- Because this sell-off looks like a bear leg in the trading range, traders should assume that there will likely be bulls buying below bars such as the November 2025 low.
- Overall, nothing has changed on the daily chart. Traders should continue to assume that the market is going to have a lot of trading range price action. This means that breakouts up and down are likely to fail.
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.
- Today gapped down on the open and went sideways, forming a trading range day lasting all day.
- Because of the consecutive sell climaxes on the higher timeframe, such as the Globex 60-minute chart, and the market being near the March 3rd low, which was an important support level, the odds favored buyers on the open in the market, forming an opening reversal.
- The gap down was fairly large, and that reduced the probability of the bulls getting a bull trend.
- The bulls managed to get a reversal up on Bar 7 in a rally up to Bar 14; however, the rally had a lot of overlapping bars and climactic behavior.
- The rally up to bar 14 tested yesterday’s low and found sellers. The bear reversal 15, 16, and 17 was strong enough to increase the odds of a trading range leading to sideways trading for the rest of the day.
- Because the bears were able to make money selling above bar one on the deep pullback to bar 17. A lot of bulls who bought the 16 close and sold and lower were likely disappointed enough that they would look to exit their longs on the bounce 18 and 19.
- Overall, today was a trading range day. You’ll notice that large trend bars fail to get weak follow-through, and that’s a sign of climactic behavior. The key thing to realize on a day like today is that gaps are likely to close. This means traders fading breakouts, buying below bar scaling and lower, selling above bar scaling and higher, are likely to make money.
EURUSD Forex market analysis
EURUSD Forex daily chart
- The EURUSD recently got a bear breakout with follow-through on March 2nd and 3rd. This was a strong enough downside breakout to at least expect a small second leg down.
- The problem for the bears is that it’s a potential second leg trap in a late second leg following the sell-off from the January 27th high to the February 6th low. Traders would see that sell-off as a likely leg one, expecting a second leg down, which the bears got over the past few days.
- Because of the tails below the past three trading days and the overall trading range price action, traders should assume that the market will likely test back up to the February 19th breakout point low over the next several days.
- The most important thing to remember on the daily chart is that the market is in a broad trading range, and second legs typically fail and become traps. This means that there is an increased risk that this recent downside breakout is likely going to fail and lead to a reversal up and test of prior breakout points.
- Bears who sold, betting that the sell-off to January 6th was likely to get a second leg down and test the January 19th most recent buy climax, we’ll likely be interested in taking profits down here. Fools will also see it as a credible location to buy if they are willing to use a wide stop and scale in. Both of those reasons increase the risk of a bounce.
- The Bears want the opposite. They’re hopeful that they have successfully trapped the bulls in the market. We’ll get a couple of legs down. Even if the market does get a second leg down after last week’s downside breakout, the downside is likely to be limited.
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.
