E-mini S&P trends after bear gap

Brooks Price Action - 06-25-2012 Monday

pending chart 1405

Gap down

  • Monday, June 25, 2012
  • Bar 1 - Yesterday = weak bull channel so bear flag and might become higher time frame final flag. Supreme court probably will announce healthcare decision this morning so might get sharp move up or down. Magnets below. Big gap, bear bar so more down, but tail so might go sideways to down
  • Bar 2 - Another bear bar so always in short, more down. Tail, so some buying pressure. Traders still will sell or short close
  • Bar 3 - Reversal bar but bear body and 3 bars down so sellers above. Low probability buy or long for swing but better to not buy or long yet. Gap below close of prior bar, like with 2, so strong bears
  • Bar 4 - Doji, all bars with tails below, so weak sell or short and might be buyers below
  • Bar 6 - Two bar revresal, micro double bottom, so might be ok scalp, but report so better to wait
  • Bar 7 - Two legged pullback in a bear move but doji and tight trading range so scalp or wait
  • Bar 12 - Two legged pullback in a bear move final flag but 3 bear bars so low probability buy or long and better to wait, especially since waiting for major news14 breakout pullback but bottom of weak channel so scalp or wait
  • Bar 13 - Court announced it will release report on thurs so that removes uncertainty and downward pressure today, so market might soon put in low of the day
  • Bar 16 - Pullback from 13 breakout above bear microchannel but 1t bull body so low probability bottom. Not high enough probability for scalp, but ok swing for possible low of the day. Might be like 16 yesterday. If low of the day, probably will need strong bull spike to turn into always in long
  • Bar 18 - Double top 13 so two legged pullback in a bear move sell or short. Tail and tight trading range so not strong. Better to scalp or wait
  • Bar 20 - Wedge 12 16, two legged pullback in a bear move 18 final flag, but doji body so low probability. Better to wait. To buy or long in bear, traders need strong signal bar or strong bull breakout
  • [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.

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