Trading Update: Friday February 6, 2026
E-mini end of day video review
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S&P E-mini market analysis
E-mini daily chart
- The daily chart continues to be in a tight trading range lasting several weeks inside of a larger trading range that began back in October.
- The bearish broke below the January 20th low. However, the market found support at that low in 6,800, leading to a reversal up today.
- So far, today’s gap up and reversal are good for the bulls. However, it’s a bull bar in the middle of the trading range on the daily chart area. This lowers the probability for the bulls.
- Because the higher timeframes, such as the weekly and daily charts, are in tight trading ranges that will limit the probability of breakouts up or down and increase the odds that most breakouts will fail. This means that the odds favor a limit order market as traders fade breakouts up and down.
- So far, the market is in agreement with this current price level. At some point, we will get a clear breakout of the trading range that has lasted over the past six months. However, it’s important to realize and remember that the market can continue to go sideways in that trading range for a long time before the market gets a successful breakout.
E-mini 5-minute chart and what to expect today
- Today gapped up on the open and is forming a spike in channel up to bar 29.
- While this is a bull trend because of the earlier selling pressure down to bar 10 and the selling pressure down to bar 17, the odds are that the channel will evolve into a trading range.
- This lowers the probability that the bull trend will last all day.
- Traders should expect that the market is probably forming a trending trading range day at best, which means the middle of the day session will probably have a lot of trading range price action.
- While the bulls have done a good job keeping all the bars above the moving average, they are allowing too much selling pressure. This increases the odds that the market will likely begin to correct down and start testing major higher lows, such as the bar 17 low.
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.
