Consider the following problem:
We have a container of water with a hole on the side, and we want to determine the velocity of the stream coming out of the hole (at $S_2$):
If we suppose $S_1>>S_2$, we can suppose that the problem is stationary, so we can apply Bernoullis identity, i.e. $\frac{\rho u^2}{2}+p+\varphi$ is constant (on a line of flow). Now according to my professor, the pressure at $S_1$ as well as at $S_2$ is equal to the atmospheric pressure, and thus: $$ \frac{\rho u_1^2}{2}+p_{atm}+\rho gh=\frac{\rho u_2^2}{2}+p_{atm} $$ But why isn't the pressure at $S_2$ equal to $p_2=p_{atm}+\rho gh$? As pressure is isotropic and uniform on the same water level, this seems right to me. I see that this would lead to $u_1=u_2$ which would't make sense, but I can't explain why $p_2=p_{atm}+\rho gh$ is false.