Trading Update: Thursday March 5, 2026
E-mini end of day video review
S&P E-mini market analysis
E-mini daily chart
- The E-mini yesterday formed a follow-through bar on the daily chart, creating consecutive bull bars. This increases the odds that the bulls will get a second leg up.
- The Bears are hopeful that they can create a big reversal bar closing on its low for a long one short. However, because yesterday is a bull bar, there will likely be buyers below the bar, and this increases the odds that the bulls will get a second leg up after the past two consecutive bull bars.
- Because of all the trading range price action, the bulls will likely be disappointed with the second leg.
- With the market being in the middle of the overall trading range with yesterday’s close, there’s increased risk that today will be a disappointment bar for the bulls.
- Even if today is a bear bar, it will likely find buyers below the bar.
- Until there is a clear breakout above or below this trading range lasting four months, traders should assume that breakouts will likely get deep pullbacks.
- Because of the higher time frame context being bullish, the odds are that any reversal down on the daily chart will be bought.
E-mini 5-minute chart and what to expect today
- Today gapped down on the open and rallied with bar 1. This was a strong enough bull bar on the open that the odds favored a second leg up, which the bulls got to bar 7.
- The bears formed a bear reversal bar, closing on its low with bar 7 creating a low 2 short after the gap down. This is a strong enough bear bar that it was reasonable for the Always In Bulls to get out, increasing odds that the Bears will get a second leg down in a test of the bar 3 close.
- The bears got a bear breakout below the bar 1 low with follow-through down to bar 13. This was a strong enough bear breakout that the bears were likely to get a 2nd leg down. However, because of all the buying pressure on the open the downside was likely limited, and the market was likely to go sideways for several bars, which it did to bar 31.
- The bears got a strong bear breakout down to bar 37; however, at this point, the market is forming consecutive sell climaxes and is getting multiple legs down in the bear channel. This increases the risk of the sell-off down to 37, becoming exhausted, and the market evolving into a trading range.
- While the bears have done a good job on the five-minute chart today, one of the problems is the higher time frame context. With the market forming consecutive bull bars on the daily chart, that increases the odds that there will be buyers in the bottom third of the past two days.
- This means that as the market continues to go lower and develop more buying pressure, there’s an increased risk that the bulls get a reversal up. This means that today is probably not going to be a bear trend day lasting all day. Instead, today is likely forming a trending trading range day, and at some point, the bulls will probably get a reversal up.
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.
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.
