E-mini S&P looking to take out recent lows

Brooks Price Action - 07-09-2012 Monday

pending chart 1457

Weekly wedge bear flag below low of yesterday. Trading range day, lower low major trend reversal, then higher low major trend reversal (hsb)

  • Monday, July 9, 2012
  • Bar 1 - Yesterday = trading range day with strong close. Expanding triangle top. Bull body bit tails so trading range bar. Yesterday low = last week's low. Last week = signal bar for wedge bear flag, so should fall below low of yesterday
  • Bar 2 - Bear inside bar but doji. Wait, or swing sell or short
  • Bar 3 - Big bear bar, close below 1, breakout, always in short. Ok swing sell or short
  • Bar 4 - Follow through but tail
  • Bar 5 - Higher low major trend reversal but 4 bars down so sellers above
  • Bar 6 - Breakout pullback sell or short but doji and tails. Barb wire. Wait
  • Bar 7 - Bull reversal bar, micro double bottom, but 1t body and tight trading range. Wait
  • Bar 9 - Bull inside bar, two legged pullback in a bear move sell or short. Should fall below low of yesterday, but not strong setup. 2t tail above so don't signal bar
  • Bar 11 - Expanding triangle 26 36 59, low of yesterday, final flag 9 two legged pullback in a bear move, but bear body and tight trading range so better to wait
  • Bar 12 - Breakout pullback sell or short but tight trading range and bull body so buyers below
  • Bar 14 - Close above 13, breakout. Fail, failure breakout below low of yesterday
  • [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 This material may not be published, broadcast, rewritten, or redistributed.

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