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 (CME:ESN14). This is his analysis for Friday, June 6, 2014.

  • Bar 1 - Gap up, odds favor early rally for follow through from y's strong rally. Doji, 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
  • Bar 3 - Fail, failure breakout high of yesterday but doji, always in long. Buy below or buyers at the low of the bar and probably scaling in lower, low probability sell or short, but weak rally and probably bull leg in trading range
  • Bar 5 - Fail, failure breakout high of yesterday second entry sell but only 2t body. Low probability, ok swing, but probably buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 8 - Final flag 4, trend channel line, but bull body, tight channel, always in long, probably buy below or buyers at the low of the bar and probably scaling in lower. Swing sell or short, but better to wait for a strong bear breakout or second entry sell. One legged pullback in a bull move but weak channel so might get sell above or sellers at the high of the bar and probably scaling in higher
  • Bar 10 - Consecutive bear bars but bears need 1 more bar for always in short so possible buy the close
  • Bar 11 - Double bottom 6 but big up, big down so sideways likely. Still always in long
  • Bar 18 - Double top 7 but nesp, always in long, more up
  • Bar 21 - Higher high major trend reversal but tight channel, not enough sgo 10 so low probability. Swing sell or short or wait
  • Bar 26 - 4 consecutive bear bars, probably always in short and sell above or sellers at the high of the bar and probably scaling in higher, but weak bear breakout so probably not much down. Target bottom of channel. Swing buy or long, stop below 10, but probably sell above or sellers at the high of the bar and probably scaling in higher
  • Bar 29 - Lower high major trend reversal but nesp so low probability sell or short
  • Bar 31 - Two legged pullback in a bull move at moving average, but tight trading range, bad for scalping with stop entries unless using swing stop. Might be back to always in long since bears have five tick failure fail, failure and did not get bear breakout
     

pending chart 3066

New all time high, a little follow-through from yesterday strong breakout above top of weekly bull channel. Climactic behavior so odds favor pullback soon. Also, since breakout above top of weekly channel, odds also favor reversal down to bottom of channel within several weeks. One more possible top of channel above, around 1960 so might get there first. For more, see here.

[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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