Trading Update: Tuesday May 5, 2026
S&P E-mini market analysis
E-mini daily chart
- The E-mini sold off yesterday, breaking last Friday’s fair reversal bar below. Because the bull channel is tight, the odds favor buyers below and around the midpoint of the Thursday, April 30th bull bar.
- The Bulls will see yesterday as a High 1 buy signal bar. They are hopeful that it leads to a strong upside breakout. However, the reality is that it is a weak buy signal bar late in a bull trend that is far from the moving average. This increases the odds of sellers not far above in the market testing down to 7,200.
- The Daily chart continues to be far from the moving average in a likely overbought rally. This increases the odds of the market pulling back over the next several weeks and testing back down to the 7,100 price level at a minimum. This price level is important because it’s right where the moving average is, and it’s the start of the bold channel that began around April 21.
- The Bears are hopeful that they can get a strong reversal; however, the odds are against it. Even if the bears do get a strong reversal down, it will likely find sellers around the 7,000 round number.
- Realistically, if the bears are going to get some reversal down, they need more selling pressure than what they have now. This means the odds favor any reversal, likely finding buyers.
E-mini 5-minute chart and what to expect today
- Today gapped up on the open and formed a follow-through bar 1. The gap up on the open was strong enough for the bulls to attempt to get followed through buying and at least a second leg up.
- The rally up to bar 8 formed a parabolic wedge. However, the channel up from the 1 low to the 8 high was tight enough that the odds favored buyers in the bottom third of the range. This led to bar 9 likely being a bad sell signal bar for the bears.
- The bull’s got a breakout above the nine high, but at this point, the odds favor a trading range and sellers above the bar 9 high. Because of the sideways trading over the first 12 bars and the 15-minute Globex chart. Being fairly late in the bull channel, the odds are the 5-minute chart is going to go sideways for the next several hours.
- At a minimum, the odds favor a test of the moving average.
- Traders should expect a lot of trading range price action and sellers potentially above yesterday’s week High 1 buy signal bar. This likely limits the upside for the bulls and increases the odds of sellers and the market finding resistance around yesterday’s high.
- Until there is a breakout, there is no breakout. This means that traders should assume the market is forming a trading range until proven otherwise.
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.
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.
