Trading Update: Monday May 4, 2026
E-mini end of day video review
S&P E-mini market analysis
E-mini daily chart
- The E-mini formed a buy reversal bar last Friday following a test of the 7,300 round number. While the signal bar for the bears is not all that strong, the context is reasonable for the bears to expect at least a couple of legs sideways to down.
- The daily chart is likely climactic and has been far from the moving average for the past several bars. This increases the odds of a test back to the moving average at some point soon.
- The Bears are hopeful that today will form a strong entry bar closing near its low, increasing the odds that the Bears can get a second leg down and test the moving average over the next several days.
- Realistically, the market’s probably going to go sideways, and the downside will likely be limited.
- Even if the market does sell off to the 7,000 round number, there will likely be buyers at that location.
- Overall, the bulls are likely exhausted, and the market will probably have to go sideways for the next several weeks. The market will also likely reach the 7,000 round number over the next several months. However, the Bears need more selling pressure.
E-mini 5-minute chart and what to expect today
- Today formed little to no gap on the open and rallied for the first 16 bars of the day. The bulls tried to get a breakout above last Friday’s bar, a 72 major lower high. However, instead, the Bears got a strong downside breakout on 18 and a sell-off below bar 1.
- Bars 22 and 23 were strong for the bears and increased the odds of getting a second leg down. The problem for the Bears was the overall context of our 22 and 23 is a Bear breakout late in a Bear channel that began last Friday.
- This increased the risk that whatever sell-off we got below 23 was likely to be a trending trading range day, and therefore the downside was likely to be limited.
- The Bears got a second leg down to bar 32, and the Bulls got a strong reversal up with bars 34 and 35.
- Bars 34 and 35 are probably strong enough for traders to expect a second leg up in a test back to the 29 high. Bar 29 is a decent buy signal bar for the bulls, and it increases the odds that the market will retest it at some point today.
- The bulls are hopeful that they can develop enough buying pressure and that the market will rally back to the bar one low at some point before the end of the day. Bar one is important because it’s a location where the bulls got trapped.
- Because of all the sideways trading since bar 24, traders should be open to the possibility of the bulls getting a reversal up and test of the bar one low before the end of the day.
Friday’s E-mini setups
Richard created the SP500 E-mini chart.
Here are reasonable stop entry setups from Friday. 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.
