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:ESM14). This is his analysis for Monday, June 23, 2014.

  • Bar 1 - Yesterday was only 3.5 points tall and at a final flag top on the daily chart so it is a sell or short sell below or sellers below or signal bar and market should test below it today. Bear bar, possible high of the day and high of week. Ok swing sell or short, but low probability
  • Bar 2 - Bear follow through, always in short. Small range yesterday so possible outside up bar today. Past 2 day rally looks weak so probably within trading range
  • Bar 4 - Fail, failure breakout low of yesterday, micro double bottom, wedge 76 81, but 5 bear bars, always in short. Low probability buy or long, but low probability swing sell or short below 1 also. Probably sell above or sellers at the high of the bar and probably scaling in higher
  • Bar 9 - New high of the day, 4 bar breakout, always in long, buy below or buyers at the low of the bar and probably scaling in lower, but low probability until strong breakout up and or down. Breakout mode. Bears see as double top high of yesterday, but always in long so buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 11 - Micro double top, second entry sell, but low probability. Limit order market, sellers scaling in above, buyers below, both scalping, breakout mode
  • Bar 18 - Fail, failure breakout but 4 consecutive bear bars so low probability buy or long and probably always in short. Better to wait for a strong bull breakout or second entry buy. Breakout pullback sell or short but low probability since bottom of tight trading range
  • Bar 21 - Breakout pullback sell or short, micro double top, but tight trading range, bad for scalping with stop entries unless using swing stop. Buy below or buyers at the low of the bar and probably scaling in lower since bottom of tight trading range, but ok swing sell or short. Higher probability to wait for breakout
  • Bar 22 - Higher low, bottom of tight trading range, second entry buy, but low probability, tight trading range, bad for scalping with stop entries unless using swing stop. Swing stop for bears above 22, 21, or 11
  • Bar 23 - Double top 21, but bottom of tight trading range so swing or wait for breakout. Possible final flag
  • Bar 25 - Doji follow through so weak fail, failure breakout, probably more down, weak channel, but probably bear leg in trading range and not in bear trend. Final flag, wedge 9 17, low probability buy or long, better to wait for a strong bull breakout or second entry buy.
  • Bar 26 - Fail, failure breakout, wedge 9 17, but tight channel, 1t body, always in short, probably more down. Better to wait for a strong bull breakout or second entry buy

pending chart 3115

Trading range day. Should go higher for another day or two and then test 1920 area, which is the bottom of the most recent bull leg. Just below top of weekly channel. Odds favor failed bull breakout and then reversal down to bottom of channel.

[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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