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, August 11, 2014.
 

  • Bar 1 - Last week reversed up from the weekly moving average and created a breakout pullback buy or long sell below or sellers below or signal bar. The entry price is above its high = green line, which is also a lower high on the 60 minimum or minutes. It is an obvious magnet. The bulls want a breakout above so that the bears do not have lower highs, which they need for a bear trend. The bears want a double top lower high major trend reversal and a breakout below the neckline, which is last week's low, and then a measured move down. Big gap up, bear reversal bar at bear trendline, fail, failure breakout above bull channel, but small bar. Ok swing high for high of the day but sideways more likely.
  • Bar 2 - Breakout pullback buy or long but another small bar. Limit order market, sellers scaling in above, buyers below, both scalping
  • Bar 3 - 2ed since outside down bar, micro double top, but limit order market, sellers scaling in above, buyers below, both scalping
  • Bar 4 - Two legged pullback in a bull move 2 but tight trading range, bad for scalping with stop entries unless using swing stop. Possible low of the day, 1 is possible high of the day, but both low probability so far
  • Bar 6 - Final flag 4 two legged pullback in a bull move, just below 60 minimum or minutes lower high. Always in long, weak sell below or sellers below or signal bar so probably buy below or buyers at the low of the bar and probably scaling in lower. 1t bull body so weak follow through. Weak follow through so probably bull leg in trading range
  • Bar 7 - Breakout pullback buy or long but 2 dojis. Swing stop below 5 or 4. Target just above. Good math for bears on daily chart to buy or long puts since huge reward compared to risk, even tho low probability.
  • Bar 10 - Double top high of last week, wedge 2 5, but tight channel, dojis. Ok swing for high of the day, stop above 9, but low probability until bear breakout. Similar top to july 29. Bulls have bad follow through after each bull bar so probably pullback and trading range soon
  • Bar 13 - Breakout pullback buy or long, double bottom 7, always in long, ok swing buy or long, but tight trading range, bad for scalping with stop entries unless using swing stop. Swing bears with get out or use stop above 9
  • Bar 16 - Fail, failure breakout high of last week second entry sell, fail, failure breakout wedge 8, wedge 1 8, ok swing sell or short
  • Bar 19 - Possible triangle 7 13, always in long, ok swing, but tight trading range, bad for scalping with stop entries unless using swing stop.
  • Bar 21 - Breakout, more up. Small body so not yet strong
  • Bar 23 - Wedge 8 14, ok swing sell or short for high of the day. Buy the close market so odds favor buy below or buyers at the low of the bar and probably scaling in lower, but ok swing sell or short. Bull scalpers will exit at 22 close so sell above or sellers at the high of the bar and probably scaling in higher, wait to buy or long pullback

 

pending chart 3243

The E-mini's dominant price action feature of the today is the triggering of the buy signal on the weekly chart. For today's real-time update, see Intraday Market Update. Last week reversed up from the weekly MA and created a BP B SB. the entry price is above its H, which is also a LH on the 60 min. It is an obvious magnet. the bulls want a BO above so that the bears do not have LHs, which they need for a bear trend. the bears want a DT LH MTR and a BO below the neckline, which is last week's low, and then a measured move down. 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.

Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome