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 price action in the E-mini S&P 500. This is his analysis for Tuesday, October 10, 2017.

  • Bar 1 - Gu, bear doji, high of yesterday and all-time high magnet above
  • Bar 2 - Big bull bars, buy the close
  • Bar 3 - Consecutive bull bars, but need follow through since 50% of strong breakout on open fail, failure
  • Bar 4 - Close on low, fail, failure breakout, possible high of day, but low probability so swing or wait, always in bulls can exit below and buy again above bull bar, OK sell or short, but probably trading range open so mostly a limit order market. Might get consecutive outside down bar days
  • Bar 5 - Big bear bars, consecutive bear bars, always in short, possible high of day, but low probability so swing or wait, but probably buy below or probably buyers at the low of the bar scaling in lower around moving average and 50% pullback
  • Bar 6 - Double bottom 1 but sellers above or probably sellers at the high of the bar scaling in higher, breakout pullback sell or short. Room to 50% pullback and moving average so probably more down, but bull bars so increased odds of early trading range, especially since tight channel up to 3-high
  • Bar 11 - Parabolic Wedge 5, 8, possible low of day, but low probability so swing or wait, always in bears can exit above and sell again below bear bar, but tight channel so minor trend reversal so trading range more likely, better to wait for a strong bull breakout, or more buying pressure and second entry buy. Bear wait to sell or short higher since trading range likely after bubd13 one legged pullback in a bear move but parabolic wedge at 60-minute 20-bar exponential moving average and strong bull bars 11 so buy below or probably buyers at the low of the bar scaling in lower. Probably always in long, but probably bull leg in trading range and not in bull trend likely
  • Bar 16 - Double top bear flag 13, 5 tick trap, but low probability short, probably buyers below, and sideways more likely than down
  • Bar 18 - Possible triangle, slightly higher probability for bull since parabolic wedge at 60-minute 20-bar exponential moving average and good bull reversal bar, but tight trading range not high enough probability for a scalp, better to wait
  • Bar 24 - Breakout below 20-higher low, always in short, but tight trading range not high enough probability for a scalp
  • Bar 28 - Higher low but always in short, bear bars, sellers above or probably sellers at the high of the bar scaling in higher, bear channel

More bar-by-bar analysis, daily webinar and trading course info can be found here and also here.