Trading Update: Tuesday January 20, 2026
S&P E-mini market analysis
E-mini daily chart
- The Emini formed a 2nd entry sell on January 15th, closing near its low. The following day formed a follow-through bar closing slightly above the January 15th sell signal bar.
- The daily chart formed a large gap down today, breaking out beyond the January 14th neckline of the double top. Next, the bears are hopeful that the gap down is enough selling pressure to lead to a measured move of the past 8-day tight trading range and a test down to the January 2nd low.
- The bears are hopeful that today will close near its low, increasing the odds of a 2nd leg down over the next couple of days.
- Currently, the reversal down this week on the daily chart is enough selling pressure that the odds favor a 2nd leg down.
- Traders will begin to wonder if this is the start of a pullback on the higher time frame and a test down to the 6,600 round number and the bottom of the 4-month-long trading range.
- Because the daily chart is in a trading range, traders must be open to the potential of a deep pullback and test of last Friday’s low, which is the breakout point of the gap down. At the moment, the odds favor a 2nd leg down, even if the bulls get a test of the breakout point.
E-mini 5-minute chart and what to expect today
- Today formed a large gap down on the open and has gone sideways for the first 40 bars of the day.
- The gap down is large enough that the odds are against today’s U.S. session going much lower. The day’s range when Globex is factored in is already large and greater than the average daily range over the past several sessions.
- The rally on bars 11-13 is strong and increases the odds of more trading range price action. Because of the gap down and the buying pressure today, the remaining 40 bars of the session are likely to have a lot of trading range price action.
- The bears are hopeful that the channel down continues to drift sideways to down and forms a strong downside breakout late in the day. This would cause the day to close near its low, making it a stronger bar on the daily chart.
Friday’s E-mini setups
Richard created the SP500 E-mini chart.
Here are reasonable stop entry setups from Friday (before US holiday break). 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.
