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E-mini Likely to Test Daily Moving Average

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Trading Update: Friday May 8, 2026

E-mini end of day video review

Joseph Imbornone EOD Video

S&P E-mini market analysis

E-mini daily chart

  • The daily chart formed a weak doji bar following the two-day rally that ended on May 6th. The daily chart is getting more climactic and further away from the moving average. This increases the odds of a pullback to the moving average over the next several weeks.
  • Although the daily chart is getting climactic, the recent bars are average in size. The lack of strong climactic bars increases the chances of sideways trading rather than a sharp reversal down.
  • The daily chart is 21 bars away from the moving average and at the 7,400 round number, which is another resistance level.
  • Although this small pullback trend can last for many more bars, the reality is that it is unlikely to continue much longer without touching the moving average.
  • The odds of the Bears getting a sharp reversal down are limited. Realistically, the bears need more selling pressure, and at a minimum, they need to make the market go sideways for many bars before they have a chance at getting a reversal down.
  • Even if the bears get a reversal down, the odds are it’ll be minor and lead to buyers below.

E-mini 5-minute chart and what to expect today

  • Today gapped up on the open and formed a bull bar with bar 1.  This was a sign that the market was accepting the gap and likely to get a second leg.
  • The rally up to bar 11, although it was parabolic, was a strong enough breakout to increase the odds of some second leg and buyers on the first reversal down.
  • Bar 11 was also strong enough to increase the odds of a trending trading range day. This was likely to limit the downside risk for the bulls.
  • As of bar 42, the market has been sideways for a lot of bars. The bulls are hopeful that it will get trend resumption up; however, with all the selling pressure, the odds are that this channel is going to evolve into a trading range and start testing previous higher lows.
  • The Bears are hopeful that they can get a strong reversal down and a test of the open of the day.
  • Traders should assume, with all the sideways trading, that the probability of a breakout up or down is close to 50/50.
  • Today is Friday, and therefore, weekly support and resistance are important. Traders should be prepared for a surprise rally up or down late in the day as institutions decide on the close of the weekly chart.

Yesterday’s E-mini setups

SP500 E-mini Upper Trading Range and New All-time High Selloff to Lower Range

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

SP500 E mini Opening Spike Then Broad Bull Channel up to New All time High

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.

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