Trading Update: Thursday May 14, 2026
S&P E-mini market analysis
E-mini daily chart
- The daily chart is becoming increasingly climactic as the market approaches 7,500, and the bulls reached that round number today, which is a sign of strong buying.
- Because the market has traded far above the moving average for many bars, the climactic action increases the risk that the upside is limited and that the bears will get a pullback to test the moving average.
- The bulls here are buying momentum rather than value after several buy climaxes, so they will likely be quick to exit on a bear bar closing on its low, which could accelerate a pullback.
- Even if the market sells off to the moving average, the downside is probably limited because buyers are expected to scale in lower around that area.
- While the rally to 7,500 has been strong, the past three bars are forming a late leg, which raises the risk of sellers not far above and a test back down to the May 12 low at the bottom of the most recent leg.
- Overall, the daily chart is climactic and will likely pull back for a couple of legs and test the moving average at a minimum.
E-mini 5-minute chart and what to expect today
- The market gapped up on the open and rallied, forming four consecutive bull bars, and because yesterday’s rally was strong and lasted most of the day, there was increased risk that today would form a trading range at some point.
- Instead, the market rallied in a bull trend from bar 1 all the way to bar 23, which was a buy vacuum test and a breakout above the 7,500 round number, making this a logical area for the market to find resistance and stall.
- The bears then got a strong reversal down from the bar 34 high to the bar 37 low, and while this is the first test of the moving average on the 5-minute chart and therefore increases the risk of sideways trading and a test back to the high of the day, the market is also far from the moving averages on higher time frames, so the 5-minute chart could easily pull back further than the bar 37 low.
- As of bar 39, the bears have a Low 1 short below the moving average and are hoping for a strong break to the downside, given the higher time frames, but the market may first need to form a more credible major reversal on the 5-minute chart by rallying back near the high of the day and forming a credible lower high.
- Because the higher time frames are so climactic, there is increased risk of a deep pullback today, with bar 34 being a possible high of 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.
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.
