E-mini S&P gains may be short-lived

Brooks Price Action - 06-27-2012 Wednesday

pending chart 1408

Opening Range then higher high major trend reversal, then new high of the day and 2nd higher high major trend reversal

  • Wednesday, June 27, 2012
  • Bar 1 - Yesterday = weak bull channel but ended with large two legged pullback in a bull move. Gap but tail so sellers above. Strong seasonals into July 5
  • Bar 2 - Bull body so buyers below. Might get pullback to moving average and then or buy or long so might be ok sell or short scalp
  • Bar 5 - Strong bull reversal bar, breakout pullback buy or long at moving average, possible low of the day. Ok swing buy or long, but ok to wait until after report
  • Bar 7 - Close on high, 3rd bar up, always in long, buy or long closes
  • Bar 8 - Close near high, more u, traders buying market and close
  • Bar 9 - 3rd big bull bar. Still buying closes, but might get pullback after 5 bars up. Buyers below
  • Bar 12 - Three inside bars in a row but doji 10 so lower probability. Ok buy or long with stop below 12 or bottom of three inside bars in a row 10, but since tight trading range, might fail, failure. Better to scalp or wait
  • Bar 13 - Bear reversal bar, fail, failure one legged pullback in a bull move, two legged pullback in a bear move 3, but tail and still always in long so low probability sell or short
  • Bar 15 - Bear breakout but tail. Still always in long, but bears want channel down and high of the day
  • Bar 17 - Fail, failure breakout but bear body. Wait. Bears want channel, which means lower highs and lower lows, but even if gets above 13 high and makes a higher high, the channel will probably evolve into a trading range instead of a bull channel. Wait
  • Bar 18 - Outside up bar but 16 not good buy or long. Wait. Still always in long
  • [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 This material may not be published, broadcast, rewritten, or redistributed.

Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome