E-mini S&P sees wedge top above 1400

Brooks Price Action - 08-07-2012 Tuesday

pending chart 1493

Wedge top above 1400, trending trading range day that converted into reversal day. Might be fail, failure breakout above top of 60 minutes bull channel

  • Tuesday, August 7, 2012
  • Bar 1 - Yesterday = tight trading range for most of day. Breakout above high of yesterday and close on high so more up, but no consecutive strong bull bars yesterday so probably not today. Odds favor more tight trading range until strong spike up or down. Obvious 1400 magnet above and at top of 60 minimum or minutes channel. Bulls want strong breakout
  • Bar 2 - Bear bar, fail, failure buy or long high of yesterday so ok swing sell or short and probably scalp to moving average. Might get or buy or long there
  • Bar 3 - Bull breakout
  • Bar 4 - Fail, failure breakout high of yesterday but 4t tail so buyers below
  • Bar 5 - Outside bar surrounded by inside bars but 2t tail. Trend from the first bar bull so more up
  • Bar 7 - Breakout but 1t bull body so weak
  • Bar 8 - More breakout but 2t tail
  • Bar 9 - Bull inside bar so breakout pullback buy or long, but top of weak channel and weak signal bar. Sellers above for scalp
  • Bar 12 - Bear bar, close on low, ok scalp. Two legged pullback in a bear move but tight channel. Still always in long so ok to wait to buy or long pullback around moving average
  • Bar 15 - Double bottom 9, but top of weak channel so might be sellers above. Ok swing buy or long but stop below 7 or 4 and pullback to moving average likely since weak bull
  • Bar 17 - 2nd entry sell or short but bull body
  • [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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