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E-mini Sellers at 7,000 Round Number

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Trading Update: Thursday January 8, 2026

S&P E-mini market analysis

E-mini daily chart

  • The E-mini reached the 7,000 round number yesterday; however, it failed to break above the October 29th all-time high.
  • After the test of 7,000 yesterday, the market sold off, creating a big reversal bar on the daily chart.
  • This is a credible sell signal bar for the bears and a possible double top with the October 29th all-time high.
  • So far as of today’s bar 24, the bears have failed to get strong follow-through, selling below yesterday’s low. This is a sign that there’s hesitation after yesterday’s sell signal bar, and not a lot of traders are desperate to sell.
  • This increases the risk that the market still may have to go above the October 29th high. Because of yesterday’s reversal bar closing on its low, there’s an increased risk of sellers above its high on October 29th.
  • Because of yesterday’s bear reversal bar closing on its low, there’s increased risk of sellers not far above. This will limit the probability of the bulls getting a strong upside breakout above the October 29th all-time high.

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

  • Today gapped down in the open and has gone sideways for the first 24 bars. The market is entering breakout mode and deciding if the breakout is going to be the downside or if the bulls will get the upside breakout.
  • The first hour formed a bull bar closing near its high on the 60-minute chart. Bar 19 came within one tick of triggering the buy on the 60-minute chart and failed. This increases the risk that the market will have to go above the high of the first 60 minutes, triggering the buy on the 60-minute chart.
  • Because of the buying pressure on the open, a trading range is more likely than the start of a bear trend day.
  • The bears want to get a close below yesterday’s low. Bears are hopeful that today can form a bear bar closing on its low, creating follow-through selling after yesterday’s outside down bar on the daily chart.
  • Because of the previous buying pressure in the 60-minute chart, the market will probably have to go above the high of the day (bar 19).
  • The bulls on bar 28 triggered the 60-minute buy on the first hour. The bulls failed to get a strong close on bar 28, and the market reversed down on bar 29. This increases the risk that the market’s getting a failed breakout above the triangle and may instead get the downside breakout and test of the low of the day.
  • The bears are trying their best to get strong follow-through selling after yesterday’s strong reversal bar. At a minimum, the bears want to close below the bar 75 low from yesterday, which is yesterday’s low.

Yesterday’s E-mini setups

SP500 E-mini Expanding Triangle Parabolic Wedge Midday Bear Trend Reversal

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

SP500 E mini Trading Range Day Limit Order Trading

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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