Trading Update: Wednesday May 27, 2026
E-mini end of day video review
S&P E-mini market analysis
E-mini daily chart
- The daily chart is continuing to form a tight bull channel and has been going sideways for the past several days.
- Yesterday broke to a new all-time high but created a tail above the bar, which increases the odds that the next couple of days will try to test back down below the May 14 all-time high.
- The market has been away from the moving average since April 9, so the odds favor a test of the moving average.
- This increases the odds that the market will get a couple of legs down, reach the moving average, and test the May 19 most recent higher low.
- May 19 is important because it is probably a minor reversal in the tight bull channel, and it is a late higher low, which increases the odds of a pullback.
- Overall, the buying pressure on the daily chart is strong, and that increases the odds of the market going sideways for the next several weeks.
- The bears, if they are going to get control of the market, need to get strong closes below the moving average; otherwise, the odds favor buyers below willing to scale in lower.
- Overall, the E-mini is likely to get a couple of legs down and test the moving average and the 7,400 round number.
E-mini 5-minute chart and what to expect today
- The market gapped up on the open, but it was a small gap, and the rally above yesterday’s high of bar 77 reversed because the market was inside an overall trading range.
- That led to an opening reversal and a sell-off to the bar 3 breakout.
- The bar 3 low is a strong enough bear breakout that the odds favored a second leg down, but it was at the bottom of the overall range, and bar 3 is a climactic bar, which increased the odds of a pullback over the next several bars.
- The bulls got a rally up to bar 7 that was strong and likely to get a second leg up, which it did on bar 10.
- However, because the sell-off after bar 3 was likely to get a second leg down, and it was a strong breakout on the 15-minute Globex chart, the odds favored a second leg down and a test of the bar 3 lows, which the bears got on bar 13.
- The market formed a triangle with bar 21 and broke to the downside, testing yesterday’s low, which was the bar 30 low from yesterday.
- During bar 27, the bears tried to break out below yesterday’s low, but it failed, and the market rallied back to the middle of yesterday’s range on bar 39.
- Because bar 39 is in the middle of the overall range, traders should be cautious.
- The bulls are hopeful that the market will rally and break above today’s high, which is bar 11; however, unless the bulls can get a strong upside breakout, the odds favor continued trading range price action.
- Overall, traders should expect the market to continue to go sideways until there is a clear breakout beyond the range with follow-through.
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.
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.
