E-mini S&P risks 50 point drop

Brooks Price Action - 08-15-2012 Wednesday

pending chart 1513

Higher low major trend reversal, possible triangle, bull breakout. Trading range day. Should get breakout up or down soon. Odds favor about 50 points down.

  • Wednesday, August 15, 2012
  • Bar 1 - Yesterday had 2 large legs down and strong reversal up at the close. Doji so 1 bar trading range
  • Bar 2 - Doji inside bar so weak signal bar for 2nd leg up. Smaller time frame higher low major trend reversal. Swing only or wait
  • Bar 3 - Close near high, probably more up
  • Bar 4 - Bull breakout, trend from the first bar bull, always in long, but back into tight trading range from yesterday. Better to not buy or long close since stop is below 3 low bottom of spike and report soon
  • Bar 5 - Tail, double top 66. Wait. Might be buy vacuum test of s/r
  • Bar 6 - 1t fail, failure breakout, double top, bear body, but trend from the first bar bull so buyers below. Gap between 3 high and 6 low is big so probably will fill at least a little
  • Bar 7 - Outside bar surrounded by inside bars but trend from the first bar bull so buyers below. Back in yesterday tight trading range so might become tight trading range
  • Bar 8 - Micro double top 5 but trend from the first bar. Should be buyers below, maybe at moving average. Swing bulls have stops below 3, or maybe 4 high, but since in yesterday trading range, better to not swing yet, or trade very small since big stop
  • Bar 11 - One legged pullback in a bull move buy or long at moving average, but 4 bars down. Ok swing buy or long with swing stop, maybe below 3 or 4 but still in yesterday trading range so better to not swing yet, and to wait for more info
  • Bar 13 - Double top 7 but bull body and always in long
  • Bar 15 - Bear breakout but needs follow through, else still always in long and now trading range 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.

Originally published on BPA Forums. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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