E-mini S&P eyes April high as start of correction

Brooks Price Action - 10-12-2012 Friday

pending chart 1566

15 minute higher low major trend reversal, fail, failure bull breakout, trending trading range day. Watch April high on monday - could be start of correction.

  • Friday, October 12, 2012
  • Bar 1 - Yesterday = weak bear channel so possible bull flag. Also, possible higher-low major trend reversal after consecutive sell climax on 60 minimum or minutes, and bottom of 60 minimum or minutes trading range. Doji so wait. Pink line below is neckline of 60 minimum or minutes double top. Should fall below it within week or two and then get big move down on daily, but might get rally first since possible major trend reversal bottom
  • Bar 2 - Two legged pullback in a bear move but doji at bottom of broad channel. Wait
  • Bar 4 - Low of yesterday, 15 minimum or minutes higher low major trend reversal, possible low of the day, strong reversal bar, ok swing buy or long
  • Bar 5 - Close on high, big body so good entry bar. Possible low of the day, always in long
  • Bar 6 - Big bull bar. 70% chance 4 is low of the day
  • Bar 7 - Tail, at trendline, yesterday = lots of two-sided trading, so might get deep pullback, maybe to 4 high. Swing stop below 4, but most bulls would get out sooner, like below 5 entry bar. Very heavy put buying so might be high of the day. High is measured move from open of day to pink line so might fall to pink line
  • Bar 9 - One legged pullback in a bull move but big bar and after big bear bar. Ok swing buy or long but probably better to wait since trading range pa
  • Bar 10 - Close on low, big bear bar. For bears, fail, failure breakout, second entry sell or short. Still always in long but could be ok swing sell or short. Even if stays always in long, might get deep pullback since so much two-sided trading yesterday
  • Bar 14 - Outside up bar but big up, big down so trading range likely. If get new low of the day and then reversal up, with trend 64 yesterday, 4 today. Higher low major trend reversal so ok swing buy or long but not high enough probability for scalp
  • Bar 17 - Micro double bottom but big bar and tight trading range so lp. Swing buy or long for higher low major trend reversal. Might fall to new low of the day, but if does, probably will get expanding triangle bottom since bottom of 60 minimum or minutes trading range
  • Bar 18 - Two legged pullback in a bear move sell or short below moving average, bear bar. Swing sell or short but probably better to wait since still always in long from 4 & 7 bull breakout
  • [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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