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, Jan. 31, 2018.

  • Bar 1 - Big bull bars but just below high of yesterday and 60 minute 20 bar exponential moving average. Market deciding whether to get mmu from yesterday possible triangle or reversal down to close of yesterday and possible low of yesterday
  • Bar 2 - Bull bars, but small and at high of yesterday and 60 minute 20 bar exponential moving average. Not strong buy or long. Fail, failure breakout high of yesterday buy consecutive bull bars, pullback, but not strong. Probably trading range open so mostly a limit order market
  • Bar 5 - Double bottom but 3 bear bars, sellers above or probably sellers at the high of the bar scaling in higher, magnet below moving average and 74 high breakout point
  • Bar 8 - Opening reversal up from moving average and 74 high, 50% pullback, two legged pullback in a bull move 5, always in long, possible low of day, but low probability so swing or wait, but tight channel, big tail, minor trend reversal so trading range more likely
  • Bar 11 - Lower high major trend reversal but 4 bull bars, always in long, minor trend reversal so trading range more likely
  • Bar 13 - Breakout buy or long at moving average, always in long, possible low of day, but low probability so swing or wait, but trading range open so mostly a limit order market big brb11, better to wait for a strong bull breakout, or more buying pressure and second entry buy, possible more sideways to down to below 8 low
  • Bar 16 - Wedge 1 8, but big 15, sell the close bear 15 will sellers above or probably sellers at the high of the bar scaling in higher, better to wait for a strong bull breakout, or more buying pressure and second entry buy
  • Bar 17 - One legged pullback in a bear move bug tail, buy below or probably buyers at the low of the bar scaling in lower
  • Bar 20 - Double top 17, always in short, close on low, magnet below close of yesterday, low of yesterday, might test close of yesterday or go outside down bar. But tails
  • Bar 21 - Nested wedge, third leg is smaller wedge 16 18 and 1 8, good bull bars, but tight channel, minor trend reversal so trading range more likely
  • Bar 22 - Breakout pullback sell or short, close of yesterday magnet below, but lblmm, low probability short, probably buyers below, and sideways more likely than down
     

About the Author

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 Pri