E-mini S&P pulls back after gap higher

Brooks Price Action - 10-25-2012 Thursday

pending chart 1592

Outside down bar day, consecutive sell climax, higher low major trend reversal, then trading range.

  • Thursday, October 25, 2012
  • Bar 1 - Yesterday ended with lower low major trend reversal. Gap up to 60 minute 20 bar exponential moving average but tail. Possible high of the day but bull will probably try for higher low major trend reversal on pullback. Swing sell or short, but probably buyers below
  • Bar 2 - Big bear bar, close on low, not at support, probably more dowb
  • Bar 3 - Bull reversal bar but small compared to 2 so probably sellers above
  • Bar 5 - Two legged pullback in a bull move 2 5 but tight channel. Bear microchannel so sellers above. Report next bar. Wait
  • Bar 7 - Breakout but tail
  • Bar 8 - Higher low major trend reversal, two legged pullback in a bull move, two bar revresal, but tail and tight channel. Better to wait. 7 profit target range so far and lots of two-sided trading to either trading range day or trending trading range day likely
  • Bar 11 - Bear reversal bar, close on low, double top 3 so possible high of the day. Ok swing but ok to wait
  • Bar 12 - Big bear bar, might get breakout nd trending trading range day
  • Bar 13 - Bear breakout, probably always in short and trending trading range day. More down
  • Bar 14 - Strong follow through, more down
  • Bar 15 - Bull reversal bar but strong bear spike so sellers above
  • [more Bar-by-Bar Analysis, Daily Webinar and Trading Course info at www.brookspriceaction.com and www.brookstradingcourse.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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