E-mini S&P higher as bull trend resumes

Brooks Price Action - 10-17-2012 Wednesday

pending chart 1569

Trend from the first bar bull, consecutive buy climax, trend resumption bull.

  • Wednesday, October 17, 2012
  • Bar 1 - Yesterday was 2 day small pullback bull, so consecutive buy climax. Might form early high of the day. Bear reversal bar but 2t tail. Don't sell or short
  • Bar 2 - Bull br, two legged pullback in a bull move at moving average, ok swing buy or long for possible high of the day, but after consecutive buy climax, might become final flag
  • Bar 6 - Breakout, more up
  • Bar 7 - Follow through, more up
  • Bar 8 - 3rd bar up, just below 3 day measured move target from yesterday gap open = blue line. Better to not buy or long close. Might go sideways and become final flag
  • Bar 9 - Doji, but trend from the first bar bull so buyers below
  • Bar 11 - One legged pullback in a bull move but 4 bar tight trading range so might go sideways. Target above
  • Bar 13 - Second entry sell or short but 6 bar tight trading range so swing only. Two legged pullback in a bull move buy or long more likely
  • Bar 14 - Two legged pullback in a bull move but 4t below measured move. Better to wait
  • Bar 17 - Two bar revresal, two legged pullback in a bull move final flag, but tight trading range and just above moving average. Swing sell or short only. Sideways more likely
  • Bar 21 - Outside up bar, twenty gap bars, but 4 bars down. Sideways more likely, but still always in long so ok to buy or long for swing, but swing stop below2, maybe 6. Trading range most likely. Bears want lower high major trend reversal, or expanding triangle top = higher high major trend reversal. Bulls want endless bull
  • [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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