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. This is his analysis for Tuesday, Aug. 5, 2014.

  • Bar 1 - Yesterday ended with consecutive buy climax so today will probably have a bear leg lasting a couple of hours at some point today. 60 minimum or minutes chart looks like it needs more sideways bars before deciding between trend resumption or trend reversal. Odds favor two legs down at the moment, but probably more sideways first. Doji but far from moving average above so bears will probably not sell or short 1 high and might sell or short 1 - 2 points higher for scalp. Possible low of the day but better to buy or long above bull bar. Blue line = low of yesterday = sell or short signal on daily. Pink line open low of last week
  • Bar 3 - 15 minimum or minutes opening reversal, breakout pullback sell or short but doji, strong 1, so low probability high of the day. Swing or wait. Probably limit order market, sellers scaling in above, buyers below, both scalping
  • Bar 6 - Two legged pullback in a bull move 1 but tail, not at support. Probably always in short after 3 bear bars but probably trading range day so bears can swing, but more likely will enter bull leg soon since in bottom half of yesterday range
  • Bar 8 - Parabolic wedge 1 5 7, opening reversal above yesterday 28 bottom of bull channel, but tight trading range, bad for scalping with stop entries unless using swing stop. Ok swing buy or long
  • Bar 11 - Breakout, always in long, but weak rally so probably will be trading range
  • Bar 14 - Double top 3, but strong enough bull leg so probably buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 16 - Breakout pullback buy or long but top of weak bull leg so low probability. Always in long, but probably will test down soon
  • Bar 17 - Wedge 3 13, even tho lower high. Fail, failure breakout high of the day, second entry. Ok swing but always in long so probably buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 20 - Higher low major trend reversal, breakout test or bought 6, but doji, 3 bear bars, trading range day. Always in long, ok swing, but ok to wait since probably sell above or sellers at the high of the bar and probably scaling in higher and more sideways
  • Bar 23 - Wedge 3 13 but doji so swing or better to wait for a strong bear breakout or second entry sell. Still always in long but top of trading range so better to wait to bl
  • Bar 29 - Double bottom 21, but 7 bars down, tail, wedge top 23 so probably sell above or sellers at the high of the bar and probably scaling in higher. Low probability buy or long. Trading range so probably will fall below support 10 before trying to reverse up
  • Bar 32 - Fail, failure breakout 19, microwedge, but 10 bar bear microchannel so better to wait for a strong bull breakout or second entry buy

 

pending chart 3236

The Emini's dominant price action feature of the today is the opening reversal from above yesterday's low, with yesterday being a sell signal bar for a low 1 short (a pullback from a bear breakout) on the daily chart. Last week's bear breakout on the daily chart was strong enough so that the rally will more likely form a lower high major trend reversal, and it will probably be followed by at least a second leg down to one of the support levels below. The minimum target is below 1900. For today's real-time update, see Intraday Market Update. For more on the current S&P 500 and E-mini weekly charts, see Weekly market update.

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

 

Ed Note: Every day 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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