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. 28, 2014.

  • Bar 1 - Green line = bottom of gap on daily from last week, pink line = top of that gap. Gap down, so 3 day island top. Ok swing sell or short because so overbought on all time frames that could get 100 profit target pullback. Some bears will sell or short for swing with stop above 1 or above low of yesterday. Low probability, but huge reward. Higher probability to wait for a breakout.
  • Bar 2 - No bull body so minimum follow through for bears. Always in short. Still low probability, but ok swing. Fail, failure breakout, but low probability buy or long. Probably breakout mode, bulls and bears scaling in, both swinging
  • Bar 3 - 3 bars down but weak. Possible low of the day, especially since probably 60 minimum or minutes moving average gap bar bar. Low probability buy or long
  • Bar 6 - Breakout, new high of the day, consecutive bull bars, probably always in long, closed gap on daily, but still below low of yesterday and moving average so not yet strong. Buy below or buyers at the low of the bar and probably scaling in lower, but need wide stop. Double top 1 at moving average but low probability. Might get deep pullback. Bears might need wedge top
  • Bar 8 - Parabolic wedge at moving average, but good buying pressure. Ok swing sell or short, but more likely buy below or buyers at the low of the bar and probably scaling in lower and trading range
  • Bar 10 - Higher low major trend reversal but bear bar, big up, big down so sideways likely. Ok swing buy or long but probably sell above or sellers at the high of the bar and probably scaling in higher and two legs down from parabolic wedge top. Still on parabolic wedge swing sell or short. Breakout mode, bulls and bears scaling in, both swinging
  • Bar 15 - Possible bull breakout
  • Bar 18 - Wedge 1 8 but strong enough breakout 15 16 so probably buy below or buyers at the low of the bar and probably scaling in lower and sideways. Breakout pullback buy or long but weak bull, so need swing stop. Broad bull or trading range
  • Bar 21 - Wedge 1 8 second entry sell but tight trading range, bad for scalping with stop entries unless using swing stop. Probably buy below or buyers at the low of the bar and probably scaling in lower and more channel up. Ok swing sell or short but higher probability to wait for a breakout
  • Bar 24 - Wedge 18 29 but tight trading range, bad for scalping with stop entries unless using swing stop and possible wedge top. Probably sell above or sellers at the high of the bar and probably scaling in higher and more sideways, but still always in long
  • Bar 27 - Wedge 8 16, but tight trading range, dojis, ok swing, but higher probability to wait for a breakout. Still always in long, probably buy below or buyers at the low of the bar and probably scaling in lower, but probably more tight trading range
     

pending chart 3337

The S&P 500 E-mini's (CME:ESU14) dominant price action feature of the today for day traders was the bull trend opening reversal from just above the July high. Friday is the last day of the month so it will affect the appearance of monthly candle. The bulls want tomorrow's close to be above the July high, creating a possible measuring gap, and the bears want a failed breakout above the July high. For today's real-time update, see intraday market update. For more on the current s&p500 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.

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