Trading Update: Monday February 23, 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 overall tight trading range. The Bears are still hopeful that the February 12th bear breakout is strong enough to get a second leg down.
- Because the market is in an overall trading range, it’s possible that the 12 sideways bars following February 12th are a complex pullback that will lead to a 2nd leg down.
- The Bears are trying to get a bear reversal bar closing on its low today. While this is good for the Bears, the reality is the market’s still in an overall tight trading range, and therefore that increases the risk that there might be buyers below the February 20th low.
- Overall, the bears need a strong bear breakout with follow-through closing beyond the February lows. Even if the bears get this, realistically, there will likely be buyers willing to scale in lower.
E-mini 5-minute chart and what to expect today
- Today formed an opening reversal after the bull breakout and follow-through on bars one and two. The Bears formed a strong reversal bar on 3 and 4, which increased the probability of the Bears getting a second leg down in a test of last Friday’s Bar 35 close.
- The sell-off down to Bar 21 is strong and good for the Bears; however, because of the higher time frame trading range price action, there is increased risk that the market will evolve into a trading range, making the downside after Bar 21 limited.
- The Bulls formed a strong reversal bar with bars 22, 23, and 24. This increases the odds of a possible low of the day when the bull is getting a second leg up in a test of last Friday’s Bar 36 low.
- Because the selling was strong for the bears, realistically, the Bulls probably need a more incredible Major Trend Reversal. This means that the market will probably have to test back down to the Bar 22 low later today.
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.
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.
