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E-mini Buyers Below Weak Low 1 Signal Bar

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Trading Update: Monday January 26, 2026

S&P E-mini market analysis

E-mini daily chart

  • The E-mini formed a downside breakout on January 20th. The bears are hopeful that the downside breakout will find sellers above, leading to a 2nd leg down and a retest of its low.
  • The bulls are hopeful that last Friday’s weak Low 1 short is going to fail and lead to buyers below, which is currently what is happening.
  • Bears understand that last Friday is a weak Low 1 short, especially since the signal bar is a small bull bar inside of a trading range after the January 21st strong bull reversal bar.
  • The bears are hopeful that there will be sellers somewhere above the Low 1 short, leading to a test back to the signal bar over the next couple of days.
  • So far today, it is forming a large outside up bull breakout. The bears are hopeful that this is a 2nd leg up that will form a weak follow-through bar tomorrow, and possibly a strong bear reversal bar closing on its low for a second entry sell following last Friday’s Low 1 short.
  • So far today, the upside breakout is strong enough that the market may have to test the all-time high once again. If the market does reach the all-time high, it will likely find sellers above it.

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

  • Today gapped up on the open and formed a strong 3-bar bull breakout with the first 3 bars of the day. This increased the odds of a second leg up and the first reversal down finding buyers, which it did on bar 9.
  • The 2nd leg up to bar 11 was strong enough that the odds favored buyers below and a trading range or a bull trend for the bulls.
  • The bears needed to form more selling pressure, which they were able to do with the sideways trading to bar 30.
  • The bulls formed an upside breakout on bar 31. However, the follow-through was weak and led to 5 overlapping bars from bar 36. This increased the risk of the upside breakout failing and the market reversing back down into the bar 30 contracting triangle.
  • The bulls are hopeful that bar 37 is forming a pullback after the bar 31 bull breakout. The bulls need to form open gaps to increase the probability of higher prices.
  • The bears need to do the opposite and close these gaps, such as the breakout gap that was formed on bar 31 as the market broke above the contracting triangle (bar 30).
  • At the moment, there is enough selling pressure that the market will likely selloff back to the midpoint of the triangle that ended on bar 30.
  • Today is likely either going to form a trading range, or a trending trading range day. The bears need to get more selling pressure and ultimately create closes below the moving average.

Friday’s E-mini setups

SP500 E-mini Double Bottom Spike and Channel Then Trading Range

Richard created the SP500 E-mini chart.

Here are reasonable stop entry setups from Friday. 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 Spike and Channel with Trading Range Breakout into Close

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.

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