Espanyol denied Barcelona a winning start to the new year, holding them to a goalless draw.
Both Lionel Messi and Luis Suarez's shots hit the posts.
Espanyol fans went wild celebrating their potent defenses against arguably the strongest attacking force in the world.
The draw sends Atletico Madrid to the top by two points. They beat bottom side Levante 1-0 having started the next match day early.
It also means Real Madrid now have the chance to close the 3-point gap against their long time rivals.
Rafael Benitez dismissed rumors that this will be his last game with Real Madrid if they lose to his old club Valencia.
Benitez says there is more to his team than the rough period they are going through.
"In some matches there are times when we seem to disconnect. We need more continuity - me, first of all. We need to keep working hard, working well, doing our best, in order to get results. But also, I insist, we achieve things that are not acknowledged enough: the team is in the Champions League, the team is alive in La Liga, and the evaluation must be made at the end of the season."
Benitez and Real Madrid will need to retain some consistency if they are to challenge the top spot in the league.
More La Liga games coming up,
Rayo Vallecano meeting Real Sociedad at home,
Villarreal coming up against Deportivo,
Las Palmas are in the Basque Region against Athletic Club.