E-mini S&P declines amid wedge bear channel

Brooks Price Action - 10-10-2012 Wednesday

pending chart 1564

Wedge bear channel.

  • Wednesday, October 10, 2012
  • Bar 1 - Yesterday = trend resumption bear with weak channel into close. Doji so more weak channel
  • Bar 3 - Bear follow through but big tail so not strong. Reversal bar wince close above middle but tight channel so better to wait
  • Bar 5 - Breakout pullback sell or short but bottom of weak channel and might evolve into trading range soon so lp. Better to wait since odds favor trading range and possible rally into yesterday tight trading range around 1440. If get strong bear spike = unlikely, then look to sell or short.
  • Bar 6 - Reversal bar but bear body. Ok scalp but sideways likely. Big put buy or long on weekly spy so probably more down
  • Bar 12 - Bull breakout, might get measured move up but need follow through since no strong bottom
  • Bar 13 - Bear reversal bar so weak follow through. Wait to buy or long breakout pullback. Moving average gap bar sell or short, fail, failure breakout double top so wedge bear flag 5 9, but only 1t bear body so better to wait. Possible high of the day so swing sell or short only or wait
  • Bar 16 - Higher low major trend reversal but doji so lp and better to wait
  • Bar 18 - Breakout pullback sell or short from 15 bear breakout but middle of tight trading range. Wait
  • Bar 21 - L22 sell or short, bear close below moving average. Ok swing sell or short, but since lp, need reward 2 times risk
  • Bar 22 - Good bear entry bar but need follow through. Bears will probably exit above. Two legged pullback in a bull move 16 but bear signal bar so better to not buy or long above
  • Bar 24 - Bull reversal bar, wedge 16 22. Ok to exit above, but could get bear breakout and measured move down. Still on swing sell or short from 21 two legged pullback in a bear move
  • [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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