Daily Price Action: E-Mini S&P 500

December 16, 2014 09:52 PM

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, Dec. 16, 2014.

  • Bar 1 - Pink line oct 21 gap, green line = sept high. Lower low major trend reversal, fail, failure breakout low of yesterday but small body. Ok swing buy or long but probably more trading range price action, like yesterday
  • Bar 2 - Bad entry bar. Breakout pullback sell or short, ok swing, but at bottom of bear channel so low probability so swing only or wait
  • Bar 4 - Consecutive bull bars but small and at close of yesterday and moving average. Bears want opening reversal and high of the day. Buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 7 - Breakout pullback buy or long but tight trading range, bad for scalping with stop entries unless using swing stop, at moving average, low probability so swing only or wait, even tho always in long
  • Bar 9 - Consecutive bear bars but small follow through and still above 3 low and low of the day. Always in long. Low probability so swing only or wait buy or long because bear body
  • Bar 10 - Fail, failure micro double top, strong bull breakout, always in long, more up, probably two legs up
  • Bar 12 - Two legged pullback in a bear move 5, opening reversal 15 minute 20 bar moving average plotted on a 5 minute chart and oct 31 gap = pink line, market failed at 15 minute 20 bar moving average plotted on a 5 minute chart many times for 3 days, so ok swing sell or short. More likely buy below or buyers at the low of the bar and probably scaling in lower and two legs up. Might test yesterday 42 high. Trading range price action so might get deep pullback before two legs up
  • Bar 15 - Two legged pullback in a bull move 13, possible measuring gap 8, but tight trading range, bad for scalping with stop entries unless using swing stop and at 15 minute 20 bar moving average plotted on a 5 minute chart resistance so lower probability and probably need stop below 10. Many will get out below 15 and look to buy or long again if reverses up again. Swing bears stop above 12
  • Bar 19 - Wedge 5 11, but 10 was start of bull so probably only two legs up. Doji, target above, buy below or buyers at the low of the bar and probably scaling in lower, low probability so swing only or wait sell or short
  • Bar 20 - Breakout pullback buy or long but las 2 buys were two legged pullback in a bull move, plus target above so possible sideways, but might be buy vacuum above 42
  • Bar 22 - Strong bull bar, always in long, buy the close, breakout above 42 lower high yesterday so no more bear channel and now either 60 minimum or minutes trading range or bull trend. 5 minimum or minutes strong bull trend

pending chart 3690

The S&P 500 E-mini's dominant price action feature of the today for day traders was the reversal up from below yesterday's low. 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, 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.