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E-mini Strong Reversal Down from 7,000 Round Number

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Trading Update: Thursday January 29, 2026

S&P E-mini market analysis

E-mini daily chart

  • The E-mini has been in a broad channel on the daily chart that has likely converted into a trading range.
  • The 7,000 round number has acted as resistance for several weeks. With the lack of selling press pressure during the January 20th rally, the odds are that there are sellers above the 7,000 round number.
  • The rally up to yesterday’s high was also weak with overlapping bars. This is another reason the odds were beginning to favor the bears selling and the bulls taking profits. This is what led to the downside breakout today in the sell vacuum test of 6,900, which is near the midpoint of the trading range that began back in late October.
  • While today’s sell-off has been good for the bears, it’s testing the midpoint of the overall trading range after a tight bull rally up to yesterday’s high. This increases the risk that bulls will buy any test down.
  • Although bulls may buy the test down, that does not mean the market is going to break far above 7,000. The reality is that the market is in a trading range, and the bears are increasing the selling pressure. This increases the risk that tomorrow may try to form a high one buy signal bar, and find sellers above the bar.

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

  • Today formed a bear trend from the open and sold off to the bar 20 low, which was also a test of 6900. While the selloff was strong for the bears, it was climactic and formed a series of consecutive sell climaxes on the way down. This increased the risk of the sell-off evolving into a trading range and finding buyers.
  • The bulls formed a decent buy signal bar and a bull reversal bar on bar 20. Bar 21 was a strong entry bar for the bulls and a sign that traders were giving up. This led to a strong second leg up to around bar 35.
  • As the bar 35, the bulls are becoming climactic. However, the bears have not made money below a bar since around bar 16. The bears have also been unable to make money selling above a bar for several bars. This increases the risk that the first reversal down will likely be bought.
  • Because the rally up to bar 35 is strong, the odds are we’ve seen the low of the day, and the best the bears can get is likely a 50% pullback from the low of bar 20 to the high of bar 35.
  • The bulls are hopeful that they can completely undo the sell-off. However, that is a low probability. And the odds are that today will try to close around the midpoint of the day.

Yesterday’s E-mini setups

SP500 E-mini Bear Channel After New All-time High Minor Reversal Trading Range

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 Parabolic Wedge Sell Climax Followed by Endless Pullback

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.

EURUSD Forex market analysis

EURUSD Forex daily chart

  • The EURUSD formed a tight trading range that was contracting since July 2025. The bulls recently got a strong upside breakout in a test of 1.2000; however, the rally is climactic, and that increases the odds of the market going sideways for several days.
  • The bears are hopeful that the breakout of the prolonged trading range is the final flag that will lead to a reversal down. Because of the previous trading range price action on the higher timeframes, the odds are that the market will test the breakout points from the trading range, such as the December highs.

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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