{"id":260484,"date":"2026-01-21T06:20:00","date_gmt":"2026-01-21T14:20:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=260484"},"modified":"2026-01-21T22:47:54","modified_gmt":"2026-01-22T06:47:54","slug":"strong-bear-breakout-on-the-daily-chart","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/analysis\/strong-bear-breakout-on-the-daily-chart\/","title":{"rendered":"Strong Bear Breakout on the Daily Chart"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Trading Update: Wednesday January 21, 2026<\/h3>\n\n\n\n<h2 class=\"wp-block-heading\">S&amp;P E-mini market analysis<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">E-mini daily chart<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The E-mini formed a large gap down on the daily chart. This is a strong enough bear breakout below the moving average that the odds favor a second leg down.<\/li>\n\n\n\n<li>The bears want a test of the December low, next they want a test of the bottom of the trading range, which is the November lows.<\/li>\n\n\n\n<li>At the moment, the gap down is strong enough that the first reversal up is likely to find sellers. This is part of the reason why the market found sellers above yesterday&#8217;s high on the RTH chart.<\/li>\n\n\n\n<li>At the moment, the market is likely always in short, as both bulls and bears expect the first reversal up to be minor and lead to some form of a second leg down.<\/li>\n\n\n\n<li>The bears are hopeful that yesterday&#8217;s gap down is strong enough that the market will get a second leg down and test 6600, which is near the bottom of the 4-month trading range.<\/li>\n\n\n\n<li>Traders will pay close attention to see what kind of follow-through selling the bears can get over the next couple of days. The bears are hopeful that they&#8217;ll get strong bear bars posing on their lows that are not too climactic. More likely, the bears will be disappointed, and the sell-off will look like a bare leg in a trading range as it attempts to test the November low.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">E-mini 5-minute chart and what to expect today<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Today gapped up and formed a bull trend from the open. While the rally was strong for the bulls, the market ended up forming consecutive buy climaxes up to bar 17.<\/li>\n\n\n\n<li>The higher time frame context was not ideal for the bulls as they were likely to be sellers above yesterday&#8217;s high on the ATH session.<\/li>\n\n\n\n<li>The bears ended up getting an endless pullback from the 18 high and a strong bear breakout on bars 26 and 27. This bear breakout increased the odds of a second leg down in a test of yesterday&#8217;s low.<\/li>\n\n\n\n<li>The bears are hopeful that the momentum down to bar 32 is strong enough to lead to a test of yesterday&#8217;s low, making the market go outside down on the day.<\/li>\n\n\n\n<li>Next, the bears are hopeful that they can get a close below yesterday&#8217;s low as a sign of bear strength on the daily chart.<\/li>\n\n\n\n<li>Because of the buying pressure on the open, traders will wonder if the market will find buyers at the bar 3 low. First, have to get a bounce. Forming a lower high. Before the bears can get a test of yesterday&#8217;s low.<\/li>\n\n\n\n<li>Currently, with the selling pressure down to bar 32, most traders should not be looking to buy. The higher time frame context is bearish, and that increases the risk of a possible test of yesterday&#8217;s low and a breakout below it.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Yesterday&#8217;s E-mini setups<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2026\/01\/SP500-E-mini-Gap-Down-Double-Bottom-Double-Top-Then-Bear-Channel.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2026\/01\/SP500-E-mini-Gap-Down-Double-Bottom-Double-Top-Then-Bear-Channel-680x383.jpg\" alt=\"SP500 E-mini Gap Down Double Bottom Double Top Then Bear Channel\" class=\"wp-image-260536\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2026\/01\/SP500-E-mini-Gap-Down-Double-Bottom-Double-Top-Then-Bear-Channel-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2026\/01\/SP500-E-mini-Gap-Down-Double-Bottom-Double-Top-Then-Bear-Channel-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2026\/01\/SP500-E-mini-Gap-Down-Double-Bottom-Double-Top-Then-Bear-Channel-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2026\/01\/SP500-E-mini-Gap-Down-Double-Bottom-Double-Top-Then-Bear-Channel.jpg 1280w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<p><em>Richard created the SP500 E-mini chart.<\/em><\/p>\n\n\n\n<p class=\"caption\">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.<\/p>\n\n\n\n<p class=\"caption\">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.<\/p>\n\n\n\n<p class=\"caption\">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.<\/p>\n\n\n\n<p class=\"caption\">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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Summary of today&#8217;s S&amp;P E-mini price action<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2026\/01\/SP500-E-mini-Bull-Trend-From-Open-in-Bull-Trending-Trading-Range-Day.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2026\/01\/SP500-E-mini-Bull-Trend-From-Open-in-Bull-Trending-Trading-Range-Day-680x383.jpg\" alt=\"SP500 E-mini Bull Trend From Open in Bull Trending Trading Range Day\" class=\"wp-image-260610\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2026\/01\/SP500-E-mini-Bull-Trend-From-Open-in-Bull-Trending-Trading-Range-Day-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2026\/01\/SP500-E-mini-Bull-Trend-From-Open-in-Bull-Trending-Trading-Range-Day-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2026\/01\/SP500-E-mini-Bull-Trend-From-Open-in-Bull-Trending-Trading-Range-Day-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2026\/01\/SP500-E-mini-Bull-Trend-From-Open-in-Bull-Trending-Trading-Range-Day.jpg 1280w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<p><em>Richard created the SP500 E-mini chart.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">E-mini end of day video review<\/h3>\n\n\n\n<p>Periodic end of day review videos will be moved to top of page when done.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><em>See the <a rel=\"noreferrer noopener\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/analysis\/\" target=\"_blank\">weekly update<\/a> for a discussion of the price action on the weekly chart and for what to expect going into next week.<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Trading Room<\/h2>\n\n\n\n<p>Al Brooks and other presenters talk about the detailed E-mini price action real-time each day in the Brooks Trading Course <a href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\" target=\"_blank\" rel=\"noreferrer noopener\">trading room<\/a>. We offer a 2 day free trial.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Charts use Pacific Time<\/h3>\n\n\n\n<p>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 <a href=\"https:\/\/www.brookstradingcourse.com\/blog\/market-update\/\" target=\"_blank\" rel=\"noreferrer noopener\">Market Update<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Trading Update: Wednesday January 21, 2026 S&amp;P E-mini market analysis E-mini daily chart E-mini 5-minute chart and what to expect today Yesterday&#8217;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 [&hellip;]<\/p>\n","protected":false},"author":5460,"featured_media":260536,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[153,136],"tags":[281,60],"class_list":{"0":"post-260484","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-market-update","8":"category-analysis","9":"tag-eurusd-forex","10":"tag-sp-emini","11":"entry","12":"override","13":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2026\/01\/SP500-E-mini-Gap-Down-Double-Bottom-Double-Top-Then-Bear-Channel.jpg","author_info":{"display_name":"Brad","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/brad-wolff\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/260484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/users\/5460"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=260484"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/260484\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media\/260536"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=260484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=260484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=260484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}