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E-mini Sellers at 7,400 Round Number

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Trading Update: Thursday May 7, 2026

S&P E-mini market analysis

E-mini daily chart

  • The E-mini formed a two-bar buy climax on the daily chart over the past two days, testing the 7,400 round number.
  • The daily chart continues to form a strong bull rally. However, every bar that gets added without touching the moving average makes the market move climactic and more overbought. It’s increasing the risk of the market getting a pullback over the next several bars in the test of the moving average.
  • The past two days are climactic, and there’s an increased risk that it is exhaustion. This increases the risk of the market testing back to the bottom of the buy climax, which is the May 4th low.
  • The odds favor a test of the moving average, the daily chart buying pressure is strong, and that reduces the probability of the bearers getting a strong sell-off.
  • Even if the bears get a sell-off down to 7,200 and the moving average (which they probably will), the odds of the market going significantly below it are limited.
  • Because of the reasons mentioned above, the odds favor buyers scaling lower in the market going sideways. This means that traders will expect buyers around the moving average to scale in lower.

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

  • Today gapped up on the open and sold off for the first four bars of the day, testing the moving average. Because yesterday was in a tight bull channel, up into the close, the odds were against the bears getting a strong sell-off. This led to a reversal up on bar five and a rally up to bar 18 high.
  • Bear has got a strong reversal down from bar 18 due to the market breaking above the 7,400-round number. This was likely to be a strong area of resistance and increase the probability of the market finding sellers at this round number.
  • The daily chart is also climactic, and therefore, when bars 17 and 18 formed a late bull breakout late in a bull rally, that increased the potential for bulls taking partial profits and the bears trying to get a reversal down.
  • The bears formed a strong breakout on bars 30 and 31, and that led to a spike in channel down to the 48 low.
  • While the sell-off to bar 48 was good for the Bears, it was consecutive sell climaxes with buying pressure on the way down in a bull trend on a higher time frame. This reduces the probability of the market falling far below the 48 low and increases the odds that the market will evolve into a trading range.
  • Because of the buying pressure ever since Bar 35, there is an increased risk that the market will reverse up and test back to the 35 high and the 36 close at some point later today.
  • Overall, traders should assume that today is going to have a lot of trading range price action and will likely form a trending trading range day. At the moment, Bar 48 is likely the low of the day or near the low of the day.

Yesterday’s E-mini setups

SP500 E-mini Big Gap Up Bull Trend Resumption from Open

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

Richard 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.

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