Trading Update: Thursday February 5, 2026
E-mini end of day video review
Follow Joseph’s YouTube channel for more Al Brooks price action analysis.
S&P E-mini market analysis
E-mini daily chart
- The E-Mini gapped down on the open and broke below the January 20th low. The January 20th Bear breakout was strong enough to expect a second leg down, even if the market went to a new all-time high first.
- The bulls are hopeful that there is buying pressure below the January 20th low, which there probably is. This is because the market is in a trading range on the daily chart.
- The bears are hopeful that the market will form a double top and break below the neckline, which is the January 20th low. Next, they want the market to fall for a measured move down and test the November lows of last year.
- Because of all the trading range price action that we’ve had on the daily chart, the odds are any sell-off that we get will probably be bought.
- At the moment, there are odds that there are buyers below the January 20th low, and the market will probably get a bounce.
- Traders who want a higher probability need to wait for more clarity. Right now, the market’s in the middle of the overall trading range that began back in October. This is a neutral location and not ideal for either side.
E-mini 5-minute chart and what to expect today
- E-mini gapped down on the open and rallied for the first 4 bars of the day. Because of the gap down, the odds favored a second leg. The rally above bar 1 was not all that strong. This increased the odds of sellers above the one high scaling in higher.
- The bears ultimately got the reversal down on 5 and 6. This was a strong enough bear breakout follow-through that the odds favored a second leg down and lower prices.
- The bears formed a parabolic wedge down to bar 21. While the sell-off was strong and good for the bears. The context was not ideal. The market was testing major support at the January 20th low, which increased the probability of the market finding buyers. This is what led to the strong reversal up on bars 22-25.
- Currently, the market’s always in long with bar 25, and the odds favor a second leg up and test of the 5-high. Because the market is in an overall trading range, bulls had to be prepared for a potential deep pullback.
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.
