E-mini S&P getting top-heavy

Brooks Price Action - 07-03-2012 Tuesday

pending chart 1446

Consecutive buy climax to measured move from yesterday spike down and leg 1 equals leg 2 measureed move at top of channel. Moving average gap bar then rally into close

  • Tuesday, July 3, 2012
  • Bar 1 - Yesterday ended with weak bull channel. Bear reversal bar 2nd entry sell or short so ok sell or short but small bar so might fail, failure. 10:15 close today so might be mostly sideways, but might have trend up or down first
  • Bar 2 - Big outside up bar. Probably more up
  • Bar 3 - Follow through, more up
  • Bar 4 - Doji, high of yesterday, but weak sell or short so buyers below
  • Bar 7 - Big bull bar, close on high so buy climax. Ok buy or long on close if can scale in below since targets just above
  • Bar 8 - Fail, failure breakout high of yesterday but tight channel and target above so buyers below.
  • Bar 10 - One legged pullback in a bull move, measured move 6t above, but doji and after buy climax so better to wait since might be sellers above
  • Bar 11 - Close on high, more up
  • Bar 15 - 2 legged higher high, close on low, ok sell or short below.
  • Bar 16 - Bull inside bar, breakout pullback buy or long, but 4 bear bars so increasing selling pressure. Bears will start to scale into sell or short. Better to not buy or long
  • Bar 18 - Two legged pullback in a bull move but small tight trading range and probably evolving into trading range since 8, and this might be near top so better to not buy or long. Bears creating more bear bars and more tails, so probably scaling into sell or short above. Not high enough probability to buy or long for scalp, and too late in move to buy or long for swing since getting too much selling pressure and target just above
  • [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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