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 18, 2014.
 

  • Bar 1 - Gap above high of yesterday and high of last week, fail, failure wedge top, but small gap, doji, so probably will trade below high of yesterday. Big gap so probably limited up for at least 10 bars until closer to moving average. limit order market, sellers scaling in above, buyers below, both scalping
  • Bar 3 - 3 small dojis, limit order market, sellers scaling in above, buyers below, both scalping. Ok swing buy or long for low of the day and possible low of week, but low probability. Better to wait
  • Bar 5 - Breakout, more up
  • Bar 7 - Final flag 3, trend channel line, possible high of the day, but more likely buy below or buyers at the low of the bar and probably scaling in lower and 2ly
  • Bar 8 - Breakout pullback buy or long but dojis, low probability, probably sell above or sellers at the high of the bar and probably scaling in higher 7
  • Bar 10 - Wedge 1 7, but many dojis so probably tight trading range. Ok swing sell or short for high of the day, but low probability. Still on swing buy or long, stop below 4 or 5. Always in long, but mostly small dojis so probably probably bull leg in trading range and not in bull trend
  • Bar 12 - Wedge 1 7, micro double top, but tight trading range, bad for scalping with stop entries unless using swing stop. Okay swing but higher probability if wait for breakout
  • Bar 13 - Two legged pullback in a bull move, but tight trading range, bad for scalping with stop entries unless using swing stop. Might get breakout above 12 wedge top but probably not measured move up since trading range price action
  • Bar 18 - Wedge 1 7, wedge 7 16, final flag 13, 14 low 9t below so magnet for 2 profit target bear. Ok sell or short for high of the day. Probably trading range day. Still always in long, but higher probability that emini will soon enter trading range. Bears want test of 14 low bottom of bull breakout, which would be around moving average
  • Bar 20 - Breakout pullback buy or long, five tick failure fail, failure, always in long, ok swing. Scalpers might get 3rd push up but not high enough probability unless swing stop and scale in for buy or long scalp. Swing bears will exit above 18 or 19. 1 profit target bear scalpers will get out above 20. 2 profit target bears will hold for test moving average and 14 low, even tho tight trading range, bad for scalping with stop entries unless using swing stop
  • Bar 23 - Tight trading range, bad for scalping with stop entries unless using swing stop. Always in long, stop below 8, but bears holding swing sell or short for possible high of the day, stop above 18. Very tight trading range, breakout mode, bulls and bears scaling in, both swinging, trend resumption or trend reversal.

 

pending chart 3278

The E-mini's dominant price action feature of the today for day traders is the gap up on the weekly chart. 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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