Weekly Trading Recap: May 25-29, 2026
Another solid week in the books for the DT algorithm, with 6 wins out of 10 trades generating +49.6 points on MES. The S&P had an interesting week that tested both sides before finishing with a modest +58 point gain to close at 7590.62.
Market Overview
This was a tale of two halves. The week started quietly with Monday's modest +6 point gain, trading in a tight 16-point range between 7554 and 7570. Tuesday and Wednesday told a different story as sellers stepped in, pushing us down to the week's low of 7514.75 on Wednesday. That represented a -25 point move from Monday's highs and set up what turned out to be an important inflection point.
Thursday was the standout day with a +46 point rally that reclaimed all the week's losses and then some. The market gapped higher from Wednesday's 7537 close, opened at 7536, and never looked back. We saw strong momentum carry through to 7586.5 before settling at 7582. Friday extended the bounce with another +8 points, touching the week's high at 7611.75 before closing at 7597.
The 97-point weekly range from 7514.75 to 7611.75 shows we're still in a relatively contained environment, but Thursday's reversal off the lows was decisive. We're closing near the top of the range, which is constructive for bulls heading into next week.
DT Algorithm Performance
The DT algo did exactly what it's designed to do this week - stayed patient through the chop and capitalized when opportunity presented itself. Our 77% lifetime win rate held steady at 46W/14L after this week's 6W/4L performance.
Monday's long entry at 7563.75 caught a small bounce for +0.8 points before hitting our stop as the market lost steam. Tuesday was more productive with two trades - the first long at 7547.5 captured +9.5 points to our T1 target as we bounced off Tuesday's lows around 7517. The second entry at 7535.75 grabbed another +1.8 points before stopping out.
Wednesday's single trade was our only loser, going long at 7540 near the session open but getting stopped for -2 points as the market continued grinding lower to establish that 7514.75 weekly low.
Thursday was where we really capitalized. The first long entry at 7538.9 - just above Wednesday's low - caught the entire morning rally for +59.3 points to T1. This was the trade of the week and exactly the kind of setup the algo is built to find. Two more quick scalps at 7569.5 and 7578.75 added +9.5 points each as momentum continued.
Friday gave back some profits with three stopped trades as we hit resistance near the 7610 level. The entries at 7609.5, 7602.75, and 7602 all got stopped out for a combined -38.7 points as the market found sellers at the highs. Not ideal, but this is exactly why we use stops - the algo recognized the shift in momentum and limited damage.
The TF algorithm stayed on the sidelines this week. With the 97-point weekly range, we didn't see the extended trending moves that TF is designed to capture. Sometimes the best trade is no trade.
Next Week Outlook
We're heading into the final week of May with the market sitting at 7597, just 14 points off the week's highs. That's a constructive setup for bulls, especially given how decisively we reversed off the 7514 lows on Thursday.
The key levels I'm watching are obvious: 7611 resistance from Friday's highs and 7515 support from Wednesday's low. A break above 7611 could target the next psychological level at 7650, while a failure back below 7515 would put the 7480-7500 area in play.
With Memorial Day behind us, we should see volume pick back up. June typically brings increased volatility as we head toward quarter-end rebalancing, and we've got several Fed speakers scheduled this week along with key economic data. The DT algo tends to perform well in these more active conditions.
Both algorithms remain fully operational and ready to adapt to whatever the market delivers. The DT's performance this week shows it's handling the current environment well, while TF is positioned to capitalize if we see any sustained directional moves.
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