E-mini S&P explodes higher after FOMC report

Brooks Price Action - 09-13-2012 Thursday

pending chart 1538

Strong bull breakout of top of channel on daily chart after FOMC report

  • Thursday, September 13, 2012
  • Bar 1 - Yesterday was trading range day and now at middle of yesterday at moving average. Tail, buyers below, but middle of tight trading range. Better to wait. Might be small day until after fomc report 9:30.
  • Bar 3 - Or buy or long but tight trading range. Wait
  • Bar 5 - Two legged pullback in a bull move, bull bar, probably ok scalp. Near top of weekly channel so could get move up and then reversal down for several weeks. Less like, bull breakout of bull channel.
  • Bar 7 - 2 strong bull bars so always in long
  • Bar 8 - Fail, failure breakout but buyers below. Stop below6 or 5, not 8 since might remain in trading range but still always in long
  • Bar 13 - Outside up bar, breakout pullback buy or long, but 12 not good signal bar. Wait, or swing buy or long
  • Bar 17 - Bear inside bar but always in long and 4 bars up. Probably buyers below
  • Bar 19 - Breakout, but probably will get weak follow through, like yesterday. If breakout test or bought during breakout, stop below and better to scalp since market might enter tight trading range going into 9:30 fomc report
  • Bar 22 - Inside bar, wedge 1 9, lower high major trend reversal, but weak signal bar and tight channel since 13. Better to wait. Probably tight trading range
  • Bar 34 - Wedge bull flag but report soon. Wait
  • Bar 37 - Huge bull bar but big tail. Wait. Bulls need stop below bar and that is too many points to make trade worthwhile
  • [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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