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E-mini Testing All-time High and 7,000 Round Number

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Trading Update: Wednesday January 7, 2026

S&P E-mini market analysis

E-mini daily chart

  • They formed a bull breakout bar, closing on its high yesterday, making the 7,000-round number and the all-time high less than 30 points away.
  • Because the market is so close to those important magnets mentioned above, the odds favor a test in the next couple of days.
  • The bears want the reversal down and a failed breakout above the all-time high.
  • At this point, the market is likely unable to escape the all-time high. This increases the risk that the current rally is a vacuum test of that resistance level.
  • Because of the reasons mentioned above, Traders may be hesitant to sell until they see what the breakout of the all-time high looks like.
  • The bulls need a strong breakout with follow-through above the all-time high, while the bears want a failed breakout above the all-time high. They want a strong bear reversal bar with follow-through, increasing the risk that the market will sell off and test back down to 6,600.
  • Overall, traders should wait and see what the breakout of the all-time high looks like and decide if it is likely to succeed or fail.

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

  • Today rallied, forming consecutive bull bars on the open. This was a strong enough breakout and follow-through that the odds favored a 2nd leg up.
  • Bar 4 came within two points of the 7,000 round number before selling off below the bar 1 low and testing down to bar 10.
  • While the sell-off to bar 10 was good for the bears because of the important 7,000 round number just above, and bars 2 and 3 forming a breakout and follow-through in the open, the odds were against the bears getting a bear trend.
  • This meant there was an increased risk of a failed breakout below the bar 1 low in the market, finding buyers.
  • The bulls so far are getting a reversal back up with bars 11-13. They are hopeful that this is the start of a test back to the 7,000 round number. Next, they want a rally up to the October 29th All-time high, which is near 7,011.
  • Overall, today is a lot of trading range price action, and because of the opening rally and the important magnet of 7,000, the market will probably have to reach the 7,000 round number today. This means that bar 4 is probably not going to be the high of the day.

Yesterday’s E-mini setups

SP500 E-mini Bull Trend from Open Deep Pullback Trend Resumption

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

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

Jed 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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