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 27, 2014.
 

  • Bar 1 - Yesterday ended with a tight trading range. Double top 55 at 2000, but doji so probably limited downside and possible more tight trading range. 60 minute 20 bar exponential moving average just below and might have to get there for big 2 legs down 44 before bulls will buy or long
  • Bar 5 - Higher low but tight trading range, bad for scalping with stop entries unless using swing stop, and 60 minute 20 bar exponential moving average magnet just below. 5 bar bear microchannel so always in short and probably sell above or sellers at the high of the bar and probably scaling in higher. Low probability buy or long for low of the day
  • Bar 9 - Microwedge, two legged pullback in a bull move 44, weak selloff since every bear bar had bad follow through, but missed 60 minute 20 bar exponential moving average by 1t so limited upside. Possible low of the day but low probability. Might be sell above or sellers at the high of the bar and probably scaling in higher. Better to wait for a strong bull breakout, or more buying pressure and second entry buy
  • Bar 10 - Outside down bar to leg 1 equals leg 2 measured move and 60 minute 20 bar exponential moving average, possible low of the day, but ttrs, tight channel so sideways likely, better to wait for a strong bull breakout, or more buying pressure and second entry buy
  • Bar 13 - Bull outside bar surrounded by inside bars at support so possible low of the day and ok swing buy or long, but tight trading range, bad for scalping with stop entries unless using swing stop
  • Bar 16 - Breakout but not big so trading range day most likely. Probably always in long since big two legged pullback in a bull move at 60 minute 20 bar exponential moving average, ok sell below or sellers below or signal bar 13, 2 consecutive bull bars, but trading range more likely that bull trend
  • Bar 17 - Moving average gap bar, two legged pullback in a bear move 11, but always in long, trendline above, probably buy below or buyers at the low of the bar and probably scaling in lower, but weak rally so probably trading range day
  • Bar 18 - Breakout test or bought 11 so possible 16 measuring gap, breakout pullback buy or long, trendline above, always in long, ok buy or long
  • Bar 21 - Two inside bars, but just below trendline. Always in long, but only buy or long need swing stop below 13 or 18 low
  • Bar 23 - Parabolic wedge 17 19, bear reversal bar, fail, failure breakout trendline, lower high in broad bear channel so ok swing sell or short, but more likely pullback to around 18 low and then higher low major trend reversal attempt. Better for bulls to buy or long pullback than 23 low
  • Bar 27 - Higher low major trend reversal, outside bar surrounded by inside bars second entry buy, but only 3 bars down so sideways to down more likely for two legs down from 23 parabolic wedge. Always in long, but need stop below 13. Higher probability to wait for a breakout

 

 pending chart 3331

The S&P 500 E-mini's dominant price action feature of the today for day traders wedges the bull trend opening reversal off the 60 minute moving average. The next upside targets are 5 minimum or minutes and 60 minimum or minutes 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 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.

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