Trading Update: Friday January 16, 2026
S&P E-mini market analysis
E-mini daily chart
- Yesterday formed a big reversal bar, closing on its low. The bears will see this as a second failed breakout of the October 29th high and a second entry short.
- The bears are hopeful that today will form a strong entry bar, closing on its low. Next, they want strong closes below the moving average and below Wednesday’s low. This would increase the odds of a measured move of the past 5-day tight trading range in a test of prior higher lows.
- The market is still holding above the moving average, which is a sign that the bulls are slightly in control. The problem for the bulls is that the market is at an important resistance, the 7,000 round number, and this increases the odds of sellers around this price level.
- The odds still favor sideways to down in a test of the bottom third of the trading range that has lasted for several months on the daily chart.
E-mini 5-minute chart and what to expect today
- The market gapped up on the open, then forming consecutive sell climaxes in a wedge down to bar 15. This was a large second leg down after yesterday’s sell-off to the bar 71 low.
- The bulls got a strong reversal up at the bar 15 low all the way up to bar 28. This is a strong enough rally that the odds favor a second leg up in a break above the bar 28 high.
- The sideways trading to bar 36, while it’s good for the bears, it’s probably not enough to undo the rally up to bar 28. The bulls will see the pullback down to bar 37 as a potential double bottom bull flag.
- Currently, with bar 37, the market is still always in long and likely to get a second leg up. The bears are hopeful that they can form a double top with the $28 high and test back down to the bar 15 low, the area where the bears got trapped.
- Because of the overall buying pressure after the reversal up on bar 15, the bears need to do more than what they’ve done so far. As of right now, there’s an increased risk of buyers around the midpoint of the rally up to the bar 28 high.
- The bears won’t follow through selling in a close below yesterday’s low. If today closes below yesterday’s low, that would be a better entry bar for the bears on the daily chart.
- The bulls want the opposite. They want to prevent the market from closing below yesterday’s low, and ideally, closing above the open of the day. This would create a bull reversal bar following yesterday’s second entry sell.
- So far, today has had a lot of trading range price action, and traders should assume that today will continue to have a lot of trading range price action.
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.
