Daily Price Action: E-mini S&P 500

August 13, 2018 08:30 AM

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  Friday, Aug. 10, 2018.

  • Bar 1 - 1 gd, 3-day island top after 60 minimum or minutes parabolic wedge to measured move target. Big gd so far below moving average. Many traders do not want to sell or short this low so likely trading range for 1st hour until closer to moving average. Bear want double top or wedge near moving average, bull want double bottom or wedge bottom. Bull body, possible low of day, but low probability so swing or wait, ok buy or long, but trading range likely. Open of week might be measuring gap all day since today is fri 
  • Bar 2 - Breakout pullback sell or short, close on low, possible high of day, but low probability so swing or wait, but far below moving average, trading range likely, better to wait for a strong bear breakout, or more selling pressure and second entry sell 
  • Bar 3 - Outside up bar, ok swing buy or long for test moving average, but possibly a tight trading range 
  • Bar 4 - Two legged pullback in a bear move, close on low, always in bulls can exit below and buy again above bull bar, ok swing sell or short but far below moving average, possibly limit order market, sellers scaling in above, buyers below, both scalping 
  • Bar 5 - Big bear bar, possibly trend from the first bar bear and sell the close 
  • Bar 6 - Breakout, new low, sell the close, but far below moving average so low probability so swing only or wait, and possibly double bottom 1 or wedge bottom 
  • Bar 8 - Outside up bar, always in bears can exit above and sell again below bear bar, lower low double bottom 1, possible low of day, but low probability so swing or wait, OK swing buy or long. Open of week magnet above. Today is Friday, and bears want a close below open of the week and prefer close at low of week. Just above 50% pullback so probably will test it within a few days 
  • Bar 10 - Double top lower high 4 but 3 bull body, buy below or probably buyers at the low of the bar scaling in lower. Might test 7 high 
  • Bar 14 - Possible triangle 4 10, possible high of day, but low probability so swing or wait, always in bulls can exit below and buy again above bull bar, 50% possible high of day, but low probability so swing or wait from aug. Rally is just below low of the day so magnet below, but always in long 
  • Bar 16 - Fail, failure breakout below possible triangle, two legged pullback in a bull move 12, higher low major trend reversal, possible low of day, but low probability so swing or wait, but just below moving average, 3 ticks tail, 50% pullback magnet below, not high enough probability for a scalp 
  • Bar 17 - Close on high, room to moving average, always in long, more up, but moving average is also top of trading range 



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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 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.