Trading Update: Thursday February 12, 2026
S&P E-mini market analysis
E-mini daily chart
- The E-mini tried to break above 7,000, with the past two days being disappointing for the bulls, the bears managed to get a downside breakout today, testing the February 5th buy signal bar high.
- The gap up above the February 5th high was likely to close because the market is in a trading range, and the February 5th is a weak buy signal bar for the bulls.
- The bears are hopeful that they have enough energy to break below the February 5th low and fall for a measured move down, testing the November 2025 lows.
- Because the daily chart has been in a trading range for so many months, the odds are that any sell-off we get will likely be bought, and the bears will be disappointed, just like the bulls.
- Until there’s a clear breakout of this overall trading range, traders should assume that every breakout up or down is going to fail, and that the trading range will continue. It is important to remember that trading ranges can last for a very long time.
E-mini 5-minute chart and what to expect today
- Today gapped up on the open, informed by the wedge bottom down to bar 8. The wedge had open gaps, and the channel down was tight. This increased the risk that the sell-off to bar 8 was a bear breakout on a higher time frame that was likely to get a second leg down.
- The bears ended up getting a strong downside breakout with bars 13 and 14, and the market sold off to yesterday’s low, the bar 12 low.
- The bears managed to get a strong sell-off down to the bar 24 low. While this is good for the bears, it’s climactic, and that increases the risk that the market is going to go sideways for several bars.
- Because the market sold off rather quickly, the market may have sold off and gone too far, too fast. That increases the odds that the market may end up getting a bounce.
- Because the selling down to bar 24 was strong, traders should assume that whatever rally we get will likely find sellers, and that the market will test the low of the day. This will limit the upside potential.
- Because of all the trading range price action on the higher timeframes (such as the daily chart), the bulls are hopeful that the market will be able to rally back to yesterday’s low. This would relieve the trapped bulls who bought yesterday’s low during today’s sell-off.
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.
