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 Wednesday, August 20, 2014.

  • Bar 1 - Bull body, but tails, 15 bar bear microchannel, so probably sell above or sellers at the high of the bar and probably scaling in higher around moving average. All time high 1985.75 = blue line = magnet
  • Bar 2 - Consecutive bull bars, close on high, but probably sell above or sellers at the high of the bar and probably scaling in higher and sideways
  • Bar 4 - 4 consecutive bull bars, always in long, buy below or buyers at the low of the bar and probably scaling in lower, but sideways likely because big down, big up
  • Bar 6 - Lower high major trend reversal but 5 consecutive bull bars so probably buy below or buyers at the low of the bar and probably scaling in lower. Low probability sell or short, but possible high of the day
  • Bar 7 - Breakout pullback buy or long but 2 bear bars, big down, big up, trading range likely so low probability buy or long and probably sell above or sellers at the high of the bar and probably scaling in higher, then sideways soon
  • Bar 9 - Breakout pullback buy or long, always in long, swing stop below 2
  • Bar 13 - Expanding triangle 36 60 so higher high major trend reversal, fail, failure breakout high of yesterday, two legged pullback in a bear move 6, but strong enough rally so low probability sell or short for high of the day. Better to wait for a strong bear breakout, or more selling pressure and second entry sell. Only 2 bear bars in first 12 bars. One more leg up likely, but if trading range day, this strong 2nd leg up might be high of the day, and the two legs up might fail to go above the high of the day
  • Bar 15 - Breakout pullback buy or long, double bottom 9, but doji, 2 bear bars so low probability. Ok swing buy or long since always in long, but might be sell above or sellers at the high of the bar and probably scaling in higher and trading range day.
  • Bar 22 - Wedge but tight channel so higher probability buy below or buyers at the low of the bar and probably scaling in lower and sideways. Ok swing sell or short for high of the day
  • Bar 28 - Nested wedge 19 21 and 6 12 and on 15 and 60 minimum or minutes charts, but tight channel so low probability and probably buy below or buyers at the low of the bar and probably scaling in lower. Ok swing sell or short but sideways more likely than down. Still always in long, but increasing selling pressure so probably sideways soon, especially since report 11 am
  • Bar 29 - Breakout pullback buy or long, tight channel, always in long, but 3 consecutive bear bars, nested wedge so need swing stop below 19 or 15. Might be sell above or sellers at the high of the bar and probably scaling in higher. Looks like bull channel is transitioning into trading range so better to buy or long lower. Market often reverses around 8:30. Trading range likely into report

 

pending chart 3289

The S&P 500 E-mini's dominant price action feature of the today for day traders is the trend from the open bull trend. The E-mini reversed down on the fomc report at 11 am, but then rallied to the all-time high. For today's real-time update, see intraday market update. For more on the current S&P 500 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