Trading Update: Tuesday January 27, 2026
S&P E-mini market analysis
E-mini daily chart
- The E-mini is continuing to form a tight bull channel; however, it is approaching the all-time high, which is near 7,024. This increases the risk that bulls will be disappointed by the rally and the market will likely find profit taking over the next day or two.
- The bears will see the prior all-time high (near 7,024) as a reasonable location to establish shorts, better that the market will not go much higher before pulling back.
- The bulls need a compelling reason to buy above 7,000, which has acted as resistance for the past couple of months.
- Without a strong upside breakout, many bulls will hesitate to buy up here and instead look to take profits. This increases the risk of the market finding sellers in the upper 1/3rd of the 5-month-long trading range.
- Overall, the odds favor sellers above the 7,000 round number as bulls begin to take profits and bears begin to establish shorts, betting on a couple of legs down on the daily chart.
E-mini 5-minute chart and what to expect today
- The E-mini gapped up on the open and formed a strong upside breakout with bars 3-5. This increased the odds of the bulls getting a 2nd leg up after.
- The bears tried to get a reversal down with bar 11-12; however, they failed, and the bulls formed a strong bull reversal bar on bar 13.
- Bar 13 formed a bull breakout with follow-through on 13-14, which was strong enough for higher prices and increased the risk of a possible symmetrical second leg up based on the bar 3-5 bull breakout.
- The market rallied to bar 27, forming consecutive buy climaxes and a possible parabolic wedge top.
- Because of the higher time frame context and the rally up to bar 27 being a late leg on the higher time frames, there is increased risk of an endless pullback and a reversal down to the bar 8 or 13 low, which is the start of the bull channel.
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.
