Trading Update: Monday June 8, 2026
S&P E-mini market analysis
E-mini daily chart
- Last Friday, the daily chart formed a very strong downside breakout — a climactic bar and fairly large relative to the bars to the left — which increases the odds that today will be a disappointing follow-through bar and that today will form a bull bar.
- Friday sold off, breaking below the moving average and testing the May 20 most recent higher low; those are two logical magnets for the bears.
- Because of the momentum down on Friday, the odds are the bears will get some kind of second leg down, which increases the risk that there will be sellers above today’s bar, assuming it is a disappointing bull bar.
- If today is a disappointing bull bar for the bulls, it will probably have some kind of tail above, increasing the risk that traders will sell above the bar.
- Overall, that may increase the risk that today is probably not going to be a strong bull trend bar on the daily chart.
- For the bears, the odds favor a second leg down; however, because the channel to the upside is tight, the downside might be limited for at least several bars.
- The bears achieved the minimum: they got a breakout below the moving average and tested the May 20 low, and traders will pay close attention to see what kind of follow-through they can get.
- The bears are hopeful that the market will break far below the May 20 low; realistically, because of all the buying pressure above the moving average, the odds favor sideways trading at this location.
- As for bulls buying above a bull bar, they probably need to wait for the market to get a second leg down.
- The reality is that the market is probably going to enter a trading range for the next several weeks, which will increase the risk of stop order buys not being ideal.
E-mini 5-minute chart and what to expect today
- Today gapped up and sold off, forming a bear reversal and follow-through on the open, which increased the odds of the bears getting a second leg down — which they did on bar 6.
- Because of the bad follow-through with bars 3, 4, and 5 for the bears, and because the market was selling off right above the moving average, the risk increased that there would be buyers around the bar 6 close near yesterday’s close.
- Last Friday was a climactic bear trend that increased the odds — about a 75% chance — that today would have a lot of trading range price action and therefore was unlikely to be a strong bear trend, which further increased the probability that there would be buyers around the bar 6 close.
- The bulls managed to go sideways until bar 10, when the market broke to the upside with bars 11, 12, and 13, which increased the odds of buyers below and of the bulls getting a second leg up, which they did to the bar 1 high.
- The sell-off from the bar 1 high to the bar 6 low was enough selling pressure that there were likely to be sellers above the high of the day.
- Therefore, when the market broke to the upside on bar 18, it was more likely to be a bull leg in a trading range than the start of a bull trend, which increased the risk of sellers above the bar 1 high. Ultimately, the bulls failed, and the market reversed down on bars 24 and 25.
- The bear breakout on bars 24 and 25 was strong enough to get a second leg down, which the bears got on bar 43.
- At bar 43, the market broke to a new low for today below bar 7; however, there is a tail on the bar, and so far bar 44 is forming a strong reversal bar, which increases the risk that today will continue to have a lot of trading range price action and go sideways.
- Traders should continue to pay attention to the open of today, as it will likely be an important magnet for the rest of the day.
Yesterday’s E-mini setups
Jed 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
Jed 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.
