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E-mini Likely to Reach January 20th Close

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Trading Update: Friday January 23, 2026

S&P E-mini market analysis

E-mini daily chart

  • The E-mini rallied yesterday, closing above Wednesday’s bull reversal bar.
  • Although the bulls formed a decent bull reversal bar following Tuesday’s large gap down and selloff, the odds favor sellers above yesterday’s high.
  • This increases the risk that the bulls will be disappointed by the consecutive bull bars on the daily chart.
  • At the moment, last Tuesday’s bear breakout is strong enough for a 2nd leg down, even if the market has first to test the breakout point of Tuesday’s sell-off (Monday’s low).
  • Overall, the odds favor a test of Tuesday’s bear breakout low and an attempt at a 2nd leg down. The bears are hopeful that the 2nd leg down is strong, increasing the odds of a selloff and test of the December 2025 low and ultimately a test of the November 2025 low, which is the bottom of the 4-month-long trading range.

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

  • The U.S session gapped down on the open and formed an opening reversal and strong upside breakout with bars 6  and 7. This was a strong enough bull surprise that the odds favored a 2nd leg up, which the bulls got on bar 11.
  • The breakout on bar 11 was strong and the bear reversal on bar 12 was not enough to undo the bull breakout. This increased the odds of buyers below bar 12 and another leg up, which the bulls ended up getting.
  • The market formed a parabolic wedge top with bar 19, and the bears ended up getting a pullback that formed a prolonged triangle, which led to a downside breakout.
  • The bears formed a strong bear reversal bar on bar 39, which was likely to get a 2nd leg down. However, there were issues with the breakout. Bar 39 was larger than average. This increased the risk of bad follow-through selling and bar 39 acting more like a sell climax test of support, the bar 11 low.
  • At the moment, the bulls who bought below bar 39 and scaled in lower are making money. This increases the odds of continued trading range price action and the market going sideways for the rest of the day.
  • The bears are hopeful that the selloff down to bar 42 is a strong enough bear breakout on a higher time frame (60-minute chart) that the market will get a 2nd leg down. The odds favor a test of the bar 31 low, which is a location where the bulls got trapped during bar 39.
  • The bears are hopeful that they can prevent the bulls from successfully closing the breakout point (bar 31 low). This would prevent the bulls from exiting their longs, increasing the risk of a downside bear breakout and test below bar 3 low.

Yesterday’s E-mini setups

SP500 E-mini Big Gap Up Wedge Reversal Then Trading Range Day

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 Double Bottom Spike and Channel Then Trading Range

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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