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. 26, 2014.

  • Bar 1 - Yesterday ended with a tight trading range. Bull bar, gap up, always in long, but tails. Sell above or sellers at the high of the bar and probably scaling in higher
  • Bar 2 - Fail, failure breakout high of yesterday, test 2,000, but doji. Ok swing sell or short for high of the day, higher probability to wait for a breakout. Probably buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 3 - Breakout pullback buy or long but tails. Limit order market, sellers scaling in above, buyers below, both scalping
  • Bar 5 - Double top 2000 but small bar so probably more sideways
  • Bar 7 - Big outside down bar but tails so more tight trading range, but possible high of the day so ok swing sell or short. Need follow through
  • Bar 8 - Fail, failure bear breakout, double bottom 3, bad follow through 7, possible low of the day. Tight trading range so still low probability for stop entries up and or down. Higher probability to wait for a breakout. Breakout mode, bulls and bears scaling in, both swinging
  • Bar 16 - Good breakout, probably measured move up. Tail, so weak
  • Bar 17 - Follow through, more up, but inside bar, not big, so not strong. More up
  • Bar 21 - Wedge 54 5, fail, failure breakout, but tight channel so low probability, probably buy below or buyers at the low of the bar and probably scaling in lower for two legs up. Ok swing sell or short, but okay swing but higher probability if wait for breakout
  • Bar 23 - Two legged pullback in a bull move, but tight trading range, bad for scalping with stop entries unless using swing stop. Always in long so ok swing buy or long, stop below 16. Similar to yesterday where wedge top formed, but okay swing but higher probability if wait for breakout
  • Bar 26 - Bear breakout and follow through but still above moving average so always in long, twenty gap bars buy or long. Strong enough down so sideways likely. Low probability sell or short

pending chart 3323

The S&P 500 E-mini's dominant price action feature of the today for day traders is the breakout above 2,000. Last week broke above the July all-time high. The next upside targets are 5 minute and 60 minute channel tops and measured move projections. Friday is the last day of the month so it will affect the appearance of monthly candle. 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.

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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