Trading Update: Wednesday February 4, 2026
E-mini end of day video review
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S&P E-mini market analysis
E-mini daily chart
- The E-mini formed a large bear bar closing near its midpoint yesterday. This was a strong enough bear bar to increase the odds that the bears would get some kind of second leg down in a test of yesterday’s low, which the bears got on the open today.
- The daily chart is still inside of a large trading range, which increases the odds of more overlapping bars and disappointment for swing traders.
- While the odds favor a test of the November and December lows, the reality is that with all the sideways trading, the odds are that any reversal down will get bought. Bulls who buy and scale in will likely make money.
- Overall, the daily chart is inside a trading range, which increases the odds of failed breakouts and sideways trading.
E-mini 5-minute chart and what to expect today
- The day formed a very small gap up on the opening rally for the first four bars of the day. However, the rally had a lot of overlap, and it led to an opening reversal and a sell-off down to bar 7.
- The sell-off down to 7 was strong, the rally up to the bar 4 high that began late yesterday was very tight, and that increased the odds that the bulls would need a retest of the highs before the bears could get a reversal down.
- The bears got a double top and a possible lower high major trend reversal with bar 12. The market ended up going sideways, forming a triangle with bar 18, and the bears finally got a downside breakout to bar 28, which was a second leg down from the bar 7 low.
- The sell-off to bar 28 was strong with four consecutive barrel bars that began at the bar 25 high; however, the reversal up on 29 and 30 was strong enough to trap the bears and increase the odds of a second leg up.
- As of bar 33, the bulls have a High 1 buy, and the bears are trapped. The bulls are hopeful that they can get a reversal up back into the apex of the triangle, which is around bar 18. Next, the bulls want the reversal up to be strong enough to lead to a test of the high of the day.
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.
