Daily 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 fo Friday, May 16, 2014.

  • Bar 1 - Big bear bar, close on low, top of yesterday trading range. Trading range likely 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. Possible high of the day. Might get breakout up and or down in final hour since fri
  • Bar 2 - Follow through but tail and in yesterday tight trading range since 62 so probably more tight trading range
  • Bar 3 - Or but top of trading range so probably more limit order market, sellers scaling in above, buyers below, both scalping
  • Bar 5 - Double top 3 but tight trading range, bad for scalping with stop entries unless using swing stop, limit order market, sellers scaling in above, buyers below, both scalping
  • Bar 7 - Double top 1, two legged pullback in a bear move 5, possible high of the day but tight trading range, bad for scalping with stop entries unless using swing stop so swing or wait
  • Bar 9 - Two legged pullback in a bull move 3, fail, failure breakout, ok swing buy or long but probably more sideways. Trading range pa
  • Bar 11 - Two legged pullback in a bear move sell or short but tail, 2 bull bars, bottom of yesterday trading range so probably buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 14 - Good entry bar, close on high, possible low of the day, ok swing buy or long
  • Bar 16 - 4 bars up, probably always in long for test above 74 high
  • Bar 18 - Double top 7 but 6 bars up, always in long, buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 19 - Breakout pullback buy or long but 2 dojis so need swing stop. Probably sell above or sellers at the high of the bar and probably scaling in higher high of the day for more trading range

pending chart 3016

Reversal up after island top on daily chart yesterday. For more on bull legs in trends and in trading ranges (there were both today. Might get one more new all time high first, but more likely, bears will sell or short any rally. 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.

Originally published on BPA Forums. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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