E-minis have a big bear day

Brooks Price Action - 04-10-2012 Tuesday

pending chart 1326

Big bear day down to measured move from 4/9 gap. S&P cash hit trendline on daily.

  • Tuesday, April 10, 2012
  • Bar 1 - Yesterday had a big gap down and bear close. 72 spike, then parabolic channel to 81. Outside up bar and room to moving average but why not strong reversal bar instead of outside up bar possible also, tight channel down. Something not right for bulls. Ok to buy for scalp, but probably better to wait
  • Bar 3 - Trendline breakout and moving average test. Probably buyers below but might be or. Probably better to wait for report.
  • Bar 6 - Higher low, bull bar, but not as strong as 4 5 down. Wait
  • Bar 7 - Big outside down bar, probably always in short. Bears need follow through
  • Bar 8 - Bear follow through, more down, probably for measured move
  • Bar 9 - Bull reversal bar but small compared to 7 8 so sellers above and maybe below
  • Bar 11 - One bar final flag but bear body and tight channel. Sellers above. Always in short and bears might have stop 1t above 6 low. Some have it above 8
  • Bar 14 - Double top 9 but strong bull bar on 12 so sideways likely. Always in short so ok short
  • Bar 16 - Wedge 9 13, micro double top, but doji so not strong short
  • Bar 20 - 2 inside bars so buyers above and sellers below, but odds favor final flag if bear breakout because too many consecutive sell climax without much pullback 72 76 79 81 5 8 10 18 21. Should soon go sideways to up for 10-20 bars. Better to scalp the short, but can swing the buy
  • Bar 22 - Breakout pullback short but doji. Probably buyers below since weak short and too many consecutive sell climax
  • [more Bar-by-Bar Analysis in the Forums at www.brookspriceaction.com]
About the Author
Al Brooks

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.

Originally published on BPA Forums. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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