Daily Price Action: E-mini S&P 500

pending chart 3077

Big gap down, bear 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. Test of blue line = top of gap on daily. Pink line = bottom of gap

  • Wednesday, June 11, 2014
  • Bar 3 - 2 bull bars, close on high, probably always in long, but still low probability. 1 and 3 = tails so trading range
  • Bar 5 - Outside down bar, but still always in long, stop below 1. Trading range, limit order market, sellers scaling in above, buyers below, both scalping, breakout mode
  • Bar 6 - Fail, failure breakout low of yesterday second entry buy but doji, tight trading range, low probability. Breakout mode
  • Bar 8 - Double top 5 but 1t body, 3 bull bars close of day, still always in long. Probably buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 11 - Possible triangle 5 8, close on low, micro double top below moving average, ok swing sell or short for possible high of the day. Need breakout below low of the day and follow through for higher probability
  • Bar 12 - 60 minimum or minutes moving average gap bar so probably will rally within a few 60 minimum or minutes bars and then 60 minimum or minutes major trend reversal for bigger pullback
  • Bar 13 - Breakout to new low of the day, but need follow through. Bears should take at least half off at 2 points since so many orev in past few weeks
  • Bar 14 - Lower low major trend reversal, two legged pullback in a bull move, fail, failure breakout low of the day, test bottom of gap on daily, but 3 big bear bars so low probability. Swing buy or long for possible low of the day, better to wait for a strong bull breakout or second entry buy
  • Bar 16 - Breakout pullback sell or short but 2 strong bull bars so sideways more likely. Maybe two legged pullback in a bear move soon. Still always in short, stop above 11
  • Bar 21 - Breakout test or bought 11, two legged pullback in a bear move sell or short at moving average but 1t body, lots of bull reversals today so not high enough probability unless swing stop and scale in for scalp. Ok swing sell or short. Might trap bears and then get bull breakout.
  • Bar 23 - Fail, failure two legged pullback in a bear move, but still on 14 buy or long so ok swing buy or long. Higher probability to wait for breakout above 21. Still always in short, stop above 21 so probably sell above or sellers at the high of the bar and probably scaling in higher. Tight trading range, bad for scalping with stop entries unless using swing stop
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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