Trading Update: Wednesday February 18, 2026
E-mini end of day video review
S&P E-mini market analysis
E-mini daily chart
- The E-mini formed a failed breakout below the February 5th low, which is a wedge bottom for the bulls. The bulls are hopeful that yesterday’s buy signal bar is strong enough to increase the odds that today will get follow-through buying on the daily chart. So far, today is getting decent follow-through for the bulls.
- Next, the bulls are hopeful that today’s entry bar will close on its high, which would be a sign of strength for the bulls.
- The bears will see today’s rally as a buy vacuum test of the 6,900 round number.
- They are hopeful that the current rally will form a lower high than the February 11th high.
- Because of a prolonged tight trading range on the daily chart, traders should expect breakouts up and down to continue to disappoint traders hopeful for a successful breakout beyond the range.
- With the market being at 6,900, which is the midpoint of a tight trading range, most traders should wait for more clarity. The midpoint of the range is a neutral location and therefore close to 50% probability for both the bulls and bears. This means that most traders should be flat and waiting for more clarity.
E-mini 5-minute chart and what to expect today
- Today formed a bull trend from the open and a strong rally up to bar 7. While bars 5 – 7 were strong and good for the bulls, the market has gone sideways for more than 20 bars since bar 7. This makes the probability for trend resumption closer to 50% and increases the risk of a reversal.
- The bears first needed to increase the selling pressure after the strong rally to bar 7, which they have done. The risk for the bulls is that the rally up to bar 20 high is a possible 3rd leg up and a wedge top on the 15-minute chart. This increases the risk that they might reverse back down and test back to yesterday’s bar 63 high.
- The bulls are hopeful that the sideways trading to bar 36 is a pullback that will lead to a resumption and a 2nd leg up based on the opening rally.
- The challenge for the bulls is that, as of bar 37, today has formed a decent entry bar for the bulls on the daily chart. The bulls are hopeful that today will be able to maintain this price level around 6,915 or higher, which would close today on its high. This means that the bulls will have to prevent the market from getting a sell-off for more than 40 bars.
- The more bear bars that get created, the higher the risk of a possible reversal down and a test of yesterday’s high.
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.
