E-mini S&P sees downward pressure after gap down

Brooks Price Action - 07-12-2012 Thursday

pending chart 1464

Gap down

  • Thursday, July 12, 2012
  • Bar 1 - Gap, bear bar, but tail. Probably more down since s/r several points down
  • Bar 2 - Reversal bar but bear bar. Don't buy or long
  • Bar 3 - Bear breakout, just above /r. More down
  • Bar 4 - Breakout pullback sell or short but bull doji solrp
  • Bar 5 - Reversal bar but doji. Sellers above
  • Bar 6 - Strong bull reversal bar but still always in short. Wait. Might be sellers above and below
  • Bar 9 - Strong bull reversal bar, two legged pullback in a bear move final flag, ok swing buy or long
  • Bar 11 - Double top 5 but tight trading range and buying pressure so low probability sell or short and swing only better to wait. Still on 9 buy or long as long as holds above 9 low
  • Bar 12 - Another bull reversal bar, but tight trading range so low and swing only. Still always in short until get strong bull breakout
  • Bar 13 - Two legged pullback in a bear move but 4 of 5 bull bars. Still always in short but not high probability sell or short at bottom of tight trading range and weak bear channel
  • Bar 14 - Strong bear bar. Bulls will exit. Two legged pullback in a bear move sell or short but better scalp only since tight trading range and weak channel. Lots of buying pressure so might become final flag and low of the day
  • [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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