E-mini S&P makes a higher-low amid bear breakout

Brooks Price Action - 07-11-2012 Wednesday

pending chart 1459

Higher low major trend reversal 18, possible triangle bear breakout, trending trading range day, lower low major trend reversal 62, higher low major trend reversal 75 (hsb)

  • Wednesday, July 11, 2012
  • Bar 1 - Yesterday = bear trend with 2 legs down in channel so should act like bull flag. Trendline breakout at end of day so possible major trend reversal today. Big gap above 68 yesterday so should try to fill in. Yesterday = outside down bar down so might be inside bar today. Tight trading range 3 bars so wait.
  • Bar 2 - Outside bar surrounded by inside bars two legged pullback in a bull move but tight trading range so bad for stops
  • Bar 3 - Micro double top but tight trading range. Wait
  • Bar 4 - Outside up bar after trapped bears so ok buy or long above, higher low major trend reversal, always in long
  • Bar 5 - Breakout but report soon so better to take profits
  • Bar 6 - Fail, failure breakout, wedge 68 78 but 2 strong bull bars and always in long. Buyers below
  • Bar 7 - Breakout pullback buy or long but top of weak leg. Ok buy or long but get out if no breakout pullback
  • Bar 8 - Wedge 78 5 so should get approx. Ten bar, two-legged correction sideways to down. Doji signal bar so weak, but ok sell or short
  • Bar 10 - Two legged pullback in a bull move buy or long but top of wedge. Many bears will get out above, but ideal stop is still above 8 top of wedge
  • Bar 11 - 2nd entry sell or short, but only 1t body and tight trading range so weaker. Ok sell or short for 2 legs down
  • Bar 12 - Bear breakout but tail so weak. Should get 2 legs sideways to down after fail, failure high and wedge top
  • [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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