Trading Update: Tuesday February 17, 2026
E-mini end of day video review
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S&P E-mini market analysis
E-mini daily chart
- The E-mini formed a downside breakout on February 12th. This is a strong enough bear breakout that the odds favored a second leg in a test of the February 5th low.
- The bulls are trying to get a reversal up today and a bull bar closing on its high. However, even if the market does reverse up, the daily chart is still in an overall trading range. This will limit the upside potential and increase the odds of disappointment around the middle of the tight trading range, which is around 6,900.
- The daily chart has lower targets below, such as the November 2025 low, which is the bottom of the trading range that began back in September.
- Because of the continued trading range price action on the daily chart, traders should assume that both the bulls and the bears will be disappointed by any breakout that they get, and that the market will continue to go sideways. Even if the market does reach the November 2025 low, the odds are that the market will find buyers around that price level.
E-mini 5-minute chart and what to expect today
- Rallied on the first two bars of the open and formed an opening reversal leading to a sell-off down to the 6 low.
- The breakout down to bar 6 was strong enough that the odds favored a second leg down, which the bears got on 14. However, the rally up to bar 11 formed strong bull bars, and that increased the probability that the market would evolve into a trading range if it fell below the five lows.
- The bulls got a strong upside breakout to bar 23. This is a strong enough breakout that the odds favor a second leg up.
- The pullback to Bar 34 has been disappointing for the bulls. Because of all the trading range price action, there’s an increased risk that the market will test down to the 10 high, which was a breakout point for the bulls. This would relieve the trapped bears who sold the 10 high scaling in higher. The bulls want to prevent the bears from exiting their shorts break-even or with a profit back at the 10 high. They are hopeful that the market keeps the gap open about 10, increasing the risk that the bears will be forced to buy back their shorts.
Friday’s E-mini setups
Richard created the SP500 E-mini chart.
Here are reasonable stop entry setups from Friday (before US holiday break). 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.
