E-mini S&P trends down after gap up

Brooks Price Action - 10-11-2012 Thursday

pending chart 1565

Gap up, final flag top, double top bear flag, wedge bottom.

  • Thursday, October 11, 2012
  • Bar 1 - Yesterday = weak bear trend and test of bottom of trading range. Gap up to high of yesterday, trendline, 60 minute 20 bar exponential moving average resistance, but 2t tail and small bar so wait. Probably will form higher low major trend reversal and get 2 big legs up for next day or two, testing 1445 bear spike area = measuring gap
  • Bar 3 - Bear inside bar, close on low, but small bars = trading range. Ok swing buy or long but better to wait
  • Bar 5 - 5 bar microchannel so sellers above for scalp
  • Bar 8 - Two legged pullback in a bull move, big reversal bar, but tight trading range so better to wait. Sideways more likely
  • Bar 13 - Breakout pullback buy or long but bear two inside bars at resistance. Better to not buy or long. Ok swing sell or short, but might swing and maybe part scalp since might find support at moving average
  • Bar 15 - Breakout bu many bull bos failed over past 2 weeks. Ok swing buy or long but need strong follow through, else possible high of the day
  • Bar 16 - Bear bar so failed breakout. Bulls might hold for one more bar but will get out soon if no strong follow through. Bears might sell or short for high of the day, failed double top, but better to wait for second signal
  • Bar 18 - Two legged pullback in a bull move but doji. Bulls are failing to create a strong breakout so possible high of the day
  • Bar 19 - Micro double top but doji. Ok swing sell or short but higher probability to wait for bear breakout
  • Bar 20 - Bear breakout. Ok swing sell or short with stop above. Ok to wait for follow through
  • Bar 21 - Doji follow through so not bull body. Probably always in short and sellers above and below
  • [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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