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 Tuesday, Aug. 12, 2014.

  • Bar 1 - The wedge bottom should have a two legs sideways or up, which the bulls will see as a higher low major trend reversal or head and shoulders bottom. The 1st leg up ended yesterday and the pullback has not yet ended. Bull doji, closed yesterday gap on daily = pink line, final flag 70, possible low of the day, but only 1t body so lower probability. Ok swing buy or long for low of the day, ok to wait. Probably not yet enough bars in pullback for a higher low major trend reversal, given the size of the bottom, which lasted 5 days
  • Bar 2 - Big bull bar, consecutive bull bars, always in long, buy the close, buy below or buyers at the low of the bar and probably scaling in lower, but back in yesterday tight trading range so sideways likely.
  • Bar 4 - Double top 70. Opening reversal moving average, trendline, 15 minute 20 bar moving average plotted on a 5 minute chart, but bull body, probably buy below or buyers at the low of the bar and probably scaling in lower around close of yesterday of 2 low. Low probability sell or short
  • Bar 6 - Strong bull bar, always in long, but top of trading range so low probability, possible sell above or sellers at the high of the bar and probably scaling in higher
  • Bar 9 - Double bottom 6, strong bull bar, but stronger bear bar 8. Still always in long, but breakout mode, bulls and bears scaling in, both swinging, stop for bulls below 9, stop for bears above 8. Bears will sell above or sellers at the high of the bar and probably scaling in higher, stop above 8. This is low probability but strong risk reward.
  • Bar 11 - Pullback from 8 breakout, but tight trading range, breakout mode, bulls and bears scaling in, both swinging
  • Bar 15 - Big outside down bar, possible measuring gap. Ok swing sell or short, stop above 14
  • Bar 16 - Bear follow through, probably always in short even tho still above low of the day.
  • Bar 17 - Two legged pullback in a bull move 9, double bottom 1, possible trading range day, but small 17 compared to 15 16, 60 minute 20 bar exponential moving average just below so sell above or sellers at the high of the bar and probably scaling in higher. Low probability buy or long
  • Bar 22 - Parabolic wedge 13 16, expanding triangle bottom 55 1 so lower low major trend reversal, measured move, fail, failure breakout 60 minute 20 bar exponential moving average, but strong enough breakout so probably two legs down after any bounce.sa, low probability buy or long
  • Bar 23 - Breakout pullback sell or short but sell climax at support 60 minute 20 bar exponential moving average, far from moving average so low probability, need swing stop. Probably buy below or buyers at the low of the bar and probably scaling in lower. Weak follow through for bears so probably trading range soon and possible trending trading range day. Might get bull breakout of bear flag and then reversal up after expanding triangle and parabolic wedge bottom
  • Bar 26 - Two legged pullback in a bear move but 2 dojis, only 1 bear bar in 6 bars, probably buy below or buyers at the low of the bar and probably scaling in lower and more sideways

pending chart 3244

The Emini’s dominant price action feature of the today is the bear breakout to a bear trending trading range day. For today’s real-time update, see Intraday Market Update. For more on the current S&P500 and Emini 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