Brooks Price Action: E-mini S&P

Al Brooks provides bar by bar analysis on a five-minute chart of the previous day’s prices action in the E-mini S&P 500. This is his analysis for Friday, May 9, 2014.

  • Bar 1 - Wedge 66 74 but bull bar and major trend reversal likely after sell climax and then strong rally into yesterday close. Doji so buy below or buyers at the low of the bar and probably scaling in lower sell above or sellers at the high of the bar and probably scaling in higher. Open of week = green line, so magnet at the end of day since today is fri
  • Bar 2 - Big bear bar but possible just sell vacuum test low of yesterday and then major trend reversal
  • Bar 3 - Strong follow through but bottom of 3 day trading range and possible major trend reversal so low probability sell or short
  • Bar 4 - Lower low major trend reversal, good sell below or sellers below or signal bar, ok buy or long but possible sideways. Probably buy below or buyers at the low of the bar and probably scaling in lower. Low probability sell or short
  • Bar 6 - Breakout pullback sell or short but low probability sell or short and probably buy below or buyers at the low of the bar and probably scaling in lower and below 4
  • Bar 8 - Lower low major trend reversal second entry buy, ok swing buy or long. Tight trading range so probably not good scalp. Better price than above 4 so trading range pa
  • Bar 9 - Strong breakout, always in long, more up
  • Bar 10 - Follow through, but stall at moving average so might get deep pullback. Still always in long, stop below 8 or 9. Two legged pullback in a bear move sell or short but low probability
  • Bar 11 - Two legged pullback in a bear move at moving average but 3 good bull bars so probably buy below or buyers at the low of the bar and probably scaling in lower, but trading range pa
  • Bar 13 - Breakout pullback buy or long but doji at moving average so low probability and might be sell above or sellers at the high of the bar and probably scaling in higher for test 8 high. Still always in long but trading range pa and need wide stop. Better to wait
  • Bar 16 - Higher low major trend reversal, good sell below or sellers below or signal bar, but middle of trading range so swing. Bears still on channel down

pending chart 2990

 

Lower low major trend reversal, higher low major trend reversal, trading range day. For more, see http://brookstradingcourse.com/how-to-trade-manual/trend-reversals and http://brookstradingcourse.com/how-to-trade-manual/trading-ranges/. Might go above high of year and form 60 minutes wedge top. Less likely, more bull trend above all time high. I think 60% chance may will not go above April and April will be the high of the next several months. May on monthly chart might be outside bar surrounded by inside bars for start of move down to 1700. Since may opened near high of April, odds favor selloff in May. Bulls want a move up to all time high and 1900 top of weekly channel, but more likely the high is in for at least several months. Odds favor trend down to 1700 area, but possible one more new all time high first. Reasonable to consider buying put spreads here or around 1900 for move down to around 1730 bottom of weekly channel within next few months “Sell in May and go away.”

[more Bar-by-Bar Analysis, Daily Webinar and Trading Course info at www.brookspriceaction.com and www.brookstradingcourse.com]

About the Author
Al Brooks

Al Brooks, M.D., is author of the Brooks Trading Course (27 hours of videos at BrooksTradingCourse.com), several books on Price action (Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader, Wiley, 2009, and the 500,000 word, three-book series, Trading Price Action, Wiley, 2012), and numerous articles in Futures Magazine. He also provides live intraday E-mini price action analysis and free end-of-day analysis on www.brookspriceaction.com.

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