E-mini S&P in strong bear channel

Brooks Price Action - 07-10-2012 Tuesday

pending chart 1458

Fail, failure breakout, strong bear,

  • Tuesday, July 10, 2012
  • Bar 1 - Yesterday = trading range day with strong close. Gap, bull body, but tail. Sellers scaling in above
  • Bar 2 - 2 bull bars so probably buyers below, but small bars. Wait
  • Bar 5 - Two legged pullback in a bull move but only 1t bull body and not at support. Don't sell or short
  • Bar 6 - Outside bar, trapped bulls, room to moving average. Sell or short close and below
  • Bar 7 - Close on low, more down. Sell or short close
  • Bar 8 - Big bar so sell climax and sell vacuum test close of yesterday, moving average, 60 moving average. Close near low so more down
  • Bar 9 - Close near low so more down
  • Bar 10 - Close on low, more down, but 6 bars down and at all 3 moving average so should enter trading range soon
  • Bar 11 - Two bar revresal, bull inside bar, or, but too many bars down. Sellers will scale in above. Don't buy or long
  • Bar 13 - Big bear reversal bar, breakout pullback sell or short, but near low of the day so lower probability. Trendline below, but should enter trading range soon and stay in trading range for hour
  • Bar 14 - Another big bear breakout, but should fail, failure and enter trading range. Just above trendline and should hit it, but might bounce first
  • [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 This material may not be published, broadcast, rewritten, or redistributed.

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