Daily Price Action: E-Mini S&P 500

December 19, 2014 04:06 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 Thursday, Dec. 18, 2014.

  • Bar 1 - Fail, failure breakout high of yesterday, but big bar. 25% chance high of the day but big bar so big risk and better to wait for follow through.
  • Bar 2 - Breakout pullback buy or long, possible low of the day, ok swing buy or long but possible sideways until closer to moving average
  • Bar 3 - Fail, failure breakout high of yesterday second entry sell but 2 bull bars so probably buy below or buyers at the low of the bar and probably scaling in lower and more sideways
  • Bar 7 - Weak follow through from 6 breakout, but always in long. Possible small pullback bull, but probably mostly sideways until closer to moving average
  • Bar 9 - Wedge 3 6 so many bulls will exit and look to buy or long lower. Higher high major trend reversal but tight channel so low probability so swing only or wait. Ok swing sell or short for possible high of the day but trading range more likely
  • Bar 13 - 5 bars down, consecutive bear bars with close on low, ok sell the close expecting at least two legs down
  • Bar 15 - Double bottom 4 but 6 bars down so sell above or sellers at the high of the bar and probably scaling in higher for at least test of moving average
  • Bar 20 - Breakout but big bar so possible sell climax. Bears need follow through, else sell vacuum test of support and possible bottom of bear leg in trading range
  • Bar 21 - Fail, failure breakout low of the day, double bottom 2 at na so possible low of the day, two legged pullback in a bull move 15, moving average gap bar, bull body, but tight channel. Ok buy or long, but better to wait for a strong bull breakout, or more buying pressure and second entry buy. Probably trading range day, but still might be bear trend day. Less likely, bull trend day because too many bear bars today and many reversals over past couple of weeks on 60 minimum or minutes chart and that is trading range price action
  • Bar 23 - Double top 17 but buy below or buyers at the low of the bar and probably scaling in lower. Probably trading range day
  • Bar 25 - Breakout pullback buy or long but tight trading range, bad for scalping with stop entries unless using swing stop

pending chart 3693

The S&P 500 E-mini's dominant price action feature of the today for day traders was the big gap up after testing the September high over the past few days. 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.

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.