E-mini S&P bounces off 1400, possible reversal

Brooks Price Action - 10-26-2012 Friday

pending chart 1593

Expanding triangle top, lower low major trend reversal, double bottom at 1400 so might be start of bounce on daily.

  • Friday, October 26, 2012
  • Bar 1 - Yesterday ended with expanding triangle and higher low major trend reversal. Doji in tight trading range so wait. Yesterday was outside bar on daily so today might be inside bar on daily, especially since gap down 3 days ago & mkt trying to decide if breakout or fail, failure breakout on daily
  • Bar 2 - Breakout but expanding triangle so should fail, failure
  • Bar 3 - Bear reversal bar, close on low so ok swing sell or short for high of the day. Ok to wait to see if becomes breakout pullback buy or long after 71 higher low major trend reversal
  • Bar 6 - 2 big bear bars and probably always in short but bottom of tight trading range so probably buyers
  • Bar 7 - Big bull reversal bar but 2t tail and always in short so sellers above. Double bottom 68, higher low major trend reversal so ok swing buy or long but always in short so better to wait or hold sell or short
  • Bar 10 - Two legged pullback in a bear move, lower high, always in short, but doji and middle of trading range so swing sell or short or wait
  • Bar 12 - More bear bars with close on low so strong bears and probably will get breakout. Small breakout of small breakout 80 7 12 so probably will become fail, failure wedge and get measured move and 2 legs down. Swing stop above 11. Can wait for breakout pullback to sell or short
  • Bar 13 - Small bull reversal bar compared to 11 12 so sellers above
  • Bar 15 - Breakout pullback sell or short but doji. Ok swing sell or short or wait for breakout pullback
  • Bar 16 - Breakout. Should get measured move down. Ok to sell or short close
  • Bar 17 - Bear follow through. Odds favor at least 2 legs. 1400 magnet below
  • [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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