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 Thursday, Aug. 14, 2014.

  • Bar 1 - The 60 minute wedge bottom is having its two legs sideways or up, which the bulls will see as a higher low major trend reversal or head and shoulders bottom. The emini is testing the daily moving average and the bulls want to close the gap above last week�s strong bear breakout. The bears want a 60 minimum or minutes lower high major trend reversal. Yesterday ended with a tight trading range after 3 days up so possible final flag. Fail, failure breakout but bull doji, tight channel. Probably buy below or buyers at the low of the bar and probably scaling in lower sell above or sellers at the high of the bar and probably scaling in higher
  • Bar 2 - Fail, failure breakout high of yesterday, but 2 dojis so probably buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 4 - Fail, failure breakout high of yesterday second entry sell, but dojis so low probability. Ok swing sell or short for possible high of the day, but higher probability to wait for a breakout. Limit order market, sellers scaling in above, buyers below, both scalping
  • Bar 6 - Fail, failure breakout high of yesterday 3rd entry, possible triangle 1 3 5, but tight trading range, bad for scalping with stop entries unless using swing stop, higher probability to wait for a breakout
  • Bar 8 - Breakout but tail, close at tight trading range low. Still swing sell or short, but low probability until strong breakout up and or down
  • Bar 9 - Opening reversal at moving average, two legged pullback in a bull move 1, fail, failure bear breakout, possible low of the day, ok swing but tight trading range, tail so low probability
  • Bar 11 - Breakout above 6 ledge, 3 consecutive bull bars, always in long, buy the close, but tails, no gaps, so many bulls are scalping. Ttrs below so not strong breakout and might be final bull leg.
  • Bar 13 - Fail, failure breakout but 4 consecutive bull bars. Probably buy below or buyers at the low of the bar and probably scaling in lower, but less reliable buy or long because ttrs below and no big bull trend bars with gs
  • Bar 14 - Breakout pullback buy or long but possible wedge, possible sell above or sellers at the high of the bar and probably scaling in higher. Low probability buy or long and need swing stop
  • Bar 16 - Wedge 2 13, wedge 26 2, final flag 8, final flag yesterday tight trading range, but 1t body, 5 consecutive bull bars, tight channel. Ok swing sell or short, but not yet high probability
  • Bar 18 - Breakout pullback buy or long but 3 bear bars, wedge top. Ok swing buy or long, ok swing sell or short. Trend resumption or trend reversal.

pending chart 3247

The E-mini's dominant price action feature of the day is the strong opening reversal up from the moving average after a failed bear breakout attempt. The emini might gap up tomorrow and form a 3-week island bottom, and then test the all-time high. 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.

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