E-mini S&P sees choppy price action

Brooks Price Action - 07-05-2012 Thursday

pending chart 1454

Trading range day. Trend from the first bar bear, big two legged pullback in a bull move, higher low major trend reversal, then higher high major trend reversal

  • Thursday, July 5, 2012
  • Bar 1 - Yesterday ended with bull spike after trendline breakout so possible lower high major trend reversal. Gap down but tails sell or short buyers below, sellers above
  • Bar 3 - Fail, failure two legged pullback in a bull move, breakout pullbacks but tight trading range and tail so low probability and swing sell or short only
  • Bar 4 - Breakout, more down
  • Bar 5 - Follow through so more down
  • Bar 6 - Smaller body so losing momentum. Better to wait
  • Bar 7 - Big bear bar, breakout below microwedge, probably exhaustion gap. Sell or short close but scalp
  • Bar 9 - Two bar revresal but tail. Big two legged pullback in a bull move 40, fail, failure breakout below low of the day. Gap spike and channel bear. Trend from the first bar bear so sellers will probably scale in above. Bulls probably need major trend reversal or strong breakout before taking swings up
  • Bar 11 - Close above 10 so breakout but small bar. Becoming always in long, so bulls starting to swing. Trend from the first bar so usually expect sellers above, but big up, big down with yesterday so trading range likely and now low so might be low of the day. Also, 7 might be exhaustion gap and end of move
  • Bar 14 - Bull inside bar, 6 bars up so more up, but testing 4 gap and moving average so odds favor pullback. Always in long so buyers below
  • Bar 15 - Bull breakout but not big bar and at moving average and 15 moving average. Probably exhaustion gap. Still always in long so buyers below
  • Bar 17 - Another breakout but now 9 bars up. Market had 3 spikes of about 8 consecutive bull bars in past 2 day, and this is another. Buy climax, but traders want a pullback, so traders nibble at market and pullback does not come until after buy climax, and then pullback is often deeper and lasts more bars than buyers want to see. Always in long. Buy or long pullbacks. Bulls want neew high of the day but too many bars up to buy or long close
  • [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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