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 (CME:ESM14). This is his analysis for Wednesday, June 4, 2014.
- Bar 1 - Fail, failure breakout below 60 minute 20 bar exponential moving average, bottom of 3 day trading range. Daily = 3 month final flag, outside bar surrounded by inside bars so second entry sell below low of yesterday. Low probability buy or long. Better to wait. Pink line above = all time high
- Bar 2 - Breakout pullback sell or short from breakout below 60 minute 20 bar exponential moving average, might try to breakout below low of yesterday to trigger final flag second entry sell on daily, but 5 minimum or minutes tail so low probability. Buy below or buyers at the low of the bar and probably scaling in lower, ok swing buy above or buyers above, micro double bottom, two legged pullback in a bull move 68
- Bar 3 - Bulls will buy the close to prevent sell or short trigger on daily. Micro double bottom 1 but bear body so not strong buy or long above
- Bar 4 - Big reversal up from low of yesterday, always in long, more up
- Bar 5 - Bull follow through, always in long, ok buy or long for swing up and possible low of the day
- Bar 7 - Double top 1 at moving average, but 4 bars up, always in long, buy below or buyers at the low of the bar and probably scaling in lower. Middle of 4 day trading range so might be bull leg in trading range
- Bar 10 - Double top 7 at close of yesterday, wedge 1 7, but always in long so buy below or buyers at the low of the bar and probably scaling in lower. Since trading range, might get deep pullback
- Bar 12 - Double bottom 8, always in long, but tight trading range, bad for scalping with stop entries unless using swing stop. Ok buy or long if swing stop below 3
- Bar 16 - Double top pullback but always in long, buy below or buyers at the low of the bar and probably scaling in lower
- Bar 18 - Wedge 1 7, double top all time high, but always in long, bull body, probably buy below or buyers at the low of the bar and probably scaling in lower
- Bar 19 - 17t above 5c so 4 profit target bulls will take profits
Reversal up from low of yesterday, all time high, breakout above top of 60 minute channel. For more, see here. Looks like will test top of weekly channel around 1930, which would be a reasonable area to buy put spreads. Targets around 1800 or even 1730 bottom of weekly channel within next few months.