Trading Update: Wednesday January 14, 2026
S&P E-mini market analysis
E-mini daily chart
- The E-mini yesterday formed a disappointment bar for the bulls. The bears have tried to get a bear reversal bar, closing on its low. The market rallied late in the day, creating a big tail below the bar.
- Yesterday is also an inside bar, which lowers the probability for the bears selling below its low.
- The bears are doing a good job of creating overlapping bars and increasing the selling pressure. Next, they need to get bars closing on their lows and ideally, a series of bear bars closing on their lows.
- The 7,000 round number is likely to be an important resistance level. This increases the probability that the bears will ultimately get a reversal down in a test of 6,800 and probably 6,600 at some point over the next couple of months.
E-mini 5-minute chart and what to expect today
- The day session gapped down and sold off for the first 7 bars of the day. While this was good for the bears, it formed a parabolic wedge bottom with bar 7. This increased the odds of a couple of legs sideways to up.
- The reversal up to bar 9 was strong; however, because of the tight channel down to bar 7, the odds favored a trading range and not the start of a bull trend. Although nine was a strong reversal bar, 10 and 11 were enough to increase the risk of a trading range. The bears got the downside breakout with bars 12 and 13, increasing the odds of a second leg down and price falling below the 7 level.
- The bears got a sell-off down to bar 17, and then a strong reversal up to bar 24. Because of all the buying pressure for most of the day, the odds are that today will form a trading range day, and the bear channel will not last for the rest of the day. This is, in part, why the market is getting the reversal up with bars 51 to 53.
- The bulls are hopeful that the market will test all the way back up to the 9 close, relieving the trapped bulls from earlier in the day.
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.
