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 Wednesday, June 18, 2014.
- Bar 2 - Strong bull bar but top of weak channel. Better to wait
- Bar 3 - Fail, failure breakout high of yesterday but bulls will buy below or buyers at the low of the bar and probably scaling in lower for breakout pullback buy or long. Better to wait
- Bar 6 - Fail, failure breakout high of yesterday second entry sell, ok swing sell or short for possible high of the day, but higher probability to wait for bear breakout
- Bar 9 - Two legged pullback in a bull move 4, breakout pullback, but doji, 2 bear bars. Probably sell above or sellers at the high of the bar and probably scaling in higher but ok swing buy or long
- Bar 12 - Two inside bars but middle of tight trading range. Better to wait for breakout us. Still on swing buy or long and sell or short
- Bar 13 - Lower high major trend reversal, micro double top. Middle of tight trading range so low probability. Breakout mode. Only 4 profit target range so should get new high of the day or low of the day
- Bar 16 - Double bottom 9, but low probability. Better to wait, but ok swing buy or long or sell or short. Ok swing sell or short below 9 15 double bottom for measured move down to 60 minute 20 bar exponential moving average nad 48 low
- Bar 19 - Fail, failure breakout, 60 moving average, but 2t tail, big 18. Low probability buy or long, probably sell above or sellers at the high of the bar and probably scaling in higher for two legs sideways or down, but bull body at support so bad for bears
- Bar 24 - Bear two inside bars breakout pullback sell or short, but 4 consecutive bull bars so big down, big up. Sideways likely, but might soon become always in long
- Bar 28 - Lower high at moving average but 10 bar bull microchannel, 7 bar tight trading range. Better to wait
- Bar 42 - 5 consecutive bull bars but 2nd leg on trading range day so probably trap. Wait for report. Two legged pullback in a bear move 27
FOMC on June 19, 11 a.m., 3-hour tight trading range. Bear doji, wait for breakout up and or down. Pink line = all time high.
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.