Trading Update: Friday January 30, 2026
S&P E-mini market analysis
E-mini daily chart
- The E-mini sold off yesterday and rallied midday, closing above its midpoint. This is a large High 1 buy signal bar at the top of a trading range that overlaps several bars. This lowers the probability of the bulls buying above it and increases the odds of sellers in the upper third of yesterday’s bar.
- Today will likely form an inside day. The bears are hopeful that today will close on its low, but even if it does, an inside bar around the middle of a prolonged, tight trading range is not a great probability for the bears, even if it closes on its low.
- The market is right at the 20-period moving average on the daily chart. This increases the odds that the market will continue to go sideways around this price level.
- Because the market is near the all-time highs and arguably in the upper third of the prolonged trading range that began back in October, the odds are that the market will get a couple of legs down and test closer to the bottom third of the trading range and the December low.
- Overall, the market is in a tight trading range, which is not great for traders and increases the odds that the market will continue to go sideways in this range.
E-mini 5-minute chart and what to expect today
- Today gapped down on the open, and it has gone sideways for the first 24 bars. The market has formed a lot of overlapping bars with reversals. The current structure to date is an expanding triangle, and traders should assume that today will likely have a lot of trading range price action.
- If the market does break out up or down and begin to form trending behavior. It’ll likely be a trending trading range day.
- With all the overlapping bars and sudden reversals, traders should be cautious about breakouts being successful.
- The bears have a strong sell-off down to bar 23, breaking out below the lows of the day. They are hopeful that the pullback to 26 is a bear flag that will lead to a second leg down and a breakout below the 24 low.
- Because of all the overlapping bars and the lack of strong selling near the 24 low. The risk is real that bar 24 is a failed breakout that will lead to a reversal up and test of the high of the day.
- Because today is Friday, traders should be prepared for a possible surprise breakout up or down late in the day.
- Overall, because of all the trading range price action on the open, traders should assume that today is going to have a lot of trading range price action for most 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.
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.
