Daily Price Action: E-Mini S&P 500

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 Monday, June 9, 2014.

  • Bar 1 - Breakout pullback buy or long from breakout of yesterday tight trading range, but low probability since yesterday was follow through from strong breakout so buy climax and should get 20 profit target pullback soon. Ok swing buy or long for possible low of the day. Top of weekly channel 1955.25 = pink line
  • Bar 5 - Higher high major trend reversal, final flag yesterday tight trading range, wedge 70 80, but doji, tight channel, trend from the first bar bull so buy below or buyers at the low of the bar and probably scaling in lower. Better to wait for a strong bear breakout or second entry sell
  • Bar 10 - Breakout pullback buy or long, always in long but tight trading range, bad for scalping with stop entries unless using swing stop
  • Bar 12 - Fail, failure breakout high of yesterday second entry sell but tight trading range, bad for scalping with stop entries unless using swing stop. Possible high of the day but higher probability to wait for bear breakout
  • Bar 15 - Two legged pullback in a bull move, always in long, ok swing, but tight trading range, bad for scalping with stop entries unless using swing stop. Possible final flag
  • Bar 20 - Breakout pullback buy or long, still controlled by 76, 78, 79, 1 buying pressure, but weak rally so probably probably bull leg in trading range and not in bull trend. No top yet
  • Bar 23 - Wedge 12 17 but tight channel so probably buy below or buyers at the low of the bar and probably scaling in lower and sideways. Weak channel but better to wait for a strong bear breakout or second entry sell.
  • Bar 29 - Parabolic wedge 23 25, wedge 12 17, 2t below top of weekly channel, measured move 22 gap, but 11 bar bull microchannel. Possible high of the day, and even high of next several months, but low probability sell or short, need wide stop and scale in, swing or scalp, better to wait for a strong bear breakout or second entry sell. Buy below or buyers at the low of the bar and probably scaling in lower around moving average and 26 bottom of leg up 5 high, then trading range
  • Bar 32 - 4 consecutive bear bars with close on low after parabolic wedge top, possible high of the day. Ok swing sell or short, probably always in short
  • Bar 38 - Fail, failure bear breakout, trendline, two inside bars final flag, 9t fail, failure, but 10 bar bear microchannel, good selling pressure, probably sell above or sellers at the high of the bar and probably scaling in higher, stop above 29. Low probability buy or long, stop below 20 or 14. Big up + big down = big confusion = tradingrange likely
  • Bar 40 - Two legged pullback in a bull move but bear doji, tight trading range, probably 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. Still always in short

 

pending chart 3073

Reversal down from just 2 ticks below top of weekly bull channel after huge buy climax last week. Odds favor reversal down to bottom of channel, but might get one more new high first for second entry sell. Probably sideways for at least a couple of weeks to form major trend reversal before much down. For more, see here.

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

 

Ed Note: Each trading day going forward, traders can listen to live, streaming squawk box commentary on FUTURESmag.com coming directly from the S&P trading pits in Chicago.

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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