E-mini S&P reverses course after spike

Brooks Price Action - 09-11-2012 Tuesday

pending chart 1536

Spike and channel bull, trading range day, lower high major trend reversal

  • Tuesday, September 11, 2012
  • Bar 1 - Yesterday was parabolic wedge. Gap up so might get major trend reversal. Odds favor sideways for hour or 2 since big down, big up. Steep down moving average so probably cannot go too high up without trading range. Close on high so ok swing buy or long for test 71 high
  • Bar 2 - Fail, failure breakout but doji. Don't sell or short
  • Bar 4 - Big outside up bar, outsidebar followed by a larger outsidebar, probably more up
  • Bar 5 - 2nd string bull bar, always in long, but far above steeply down moving average. Better to buy or long pullback. Might get deep pullback since trading range likely after big down, big up. 2 big bull bar spike so might get measured move up
  • Bar 6 - Bear bar, two legged pullback in a bear move, but always in long and small signal bar. Wait
  • Bar 8 - One legged pullback in a bull move but 3 bear bars and still on 6 sell or short. Wait
  • Bar 12 - 2nd entry sell or short but tight trading range and always in long. Wait. Tight trading range so better to look to enter on fail, failure breakout ud. Might be higher low major trend reversal but unusual since so far above bottom of bear.
  • Bar 18 - Spike and channel and higher high, but dojis, always in long, and microchannel. Don't sell or short. Can buy or long, since always in long, but stop below 9 and upside might be limited so either buy or long small or wait. Should enter trading range since so much overlap and tails, but no sign of top yet
  • Bar 24 - 3 bigger bull bars so probably buy vacuum test of measured move and top of yesterday trading range. Should go sideways within yesterday trading range for 1 -2 hours. Biggest pullback in 14 bars = only 4t so can only sell or short if scaling in higher
  • Bar 26 - Two inside bars, buy climax = 17 bar microchannel at measured move target so should enter trading range, probably with yesterday trading range, for couple hours
  • Bar 27 - Bear breakout so trading range likely. Still always in long. Buy climax so approx. Ten bar, two-legged correction sideways to down likely. Might get down to 9 bottom of channel, but sideways in around middle of channel and within yesterday trading range more likely for hour or 2
  • [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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