Trading Update: Friday January 2, 2026
E-mini end of day video review
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S&P E-mini market analysis
E-mini daily chart
- The daily chart of the E-mini is continuing to go sideways in the upper third of the trading range that began back in late September.
- The market is in breakout mode as traders decide if the market is going to reach the October all-time high in the 7,000 round number, or if the bears will successfully form a double top with the December 26th and October 29th highs.
- The bears are hopeful that the reversal down from the December 26 high is strong enough to lead to a break below the December 17th neckline and ultimately they break below the November low, which is the bottom of the trading range.
- Next, the bears would want a measured move down of the prolonged trading range and a test of 6,200. The odds are against the bears getting a strong downside breakout of the trading range without reaching the October 29th all-time high and the 7,000-round number.
- Because the market’s in a trading range, traders expect the market to go sideways in the middle of the range, which is in between the 6,700 and 6,800 round numbers. This is the worst location for traders to establish a position because the probability is close to 50/50. At the moment, the odds are the market will test up to the October highs.
E-mini 5-minute chart and what to expect today
- Today gapped up on the open, and the bulls got a second leg up to the bar 7 high. However, the opening range was forming a possible expanding triangle, and the bears got the downside breakout to the bar 11 low.
- The sell-off to the bar 11 low was strong enough for a second leg down, which the bears got on bar 21.
- However, the rally from the bar 12 low to bar 15 high was strong enough to increase the risk of a trading range. This meant the odds favored buyers below the 12 low, scaling in lower.
- Currently, the market is forming a trading range and has a possible wedge bottom with bars 12, 21, and 29. The bulls are hopeful that the reversal up from the bar 29 low is strong enough for a second leg up in a test of the bar 15 close, which is the start of the bear channel.
- The bears hope that the market will continue to form lower highs and lower lows. However, because of all the trading range price action and the buying pressure since bar 12, the odds are against a bear trend lasting all day.
Summary of today’s S&P E-mini price action
Richard created the SP500 E-mini chart.
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.
