E-mini S&P bear trend resumes after gap higher

Brooks Price Action - 11-02-2012 Friday

pending chart 1601

Gap up, trend from the first bar bear, trend resumption bear. Bear on daily chart.

  • Friday, November 2, 2012
  • Bar 1 - Yesterday ended with trading range. Gap up, test of strong 10/6 close, double top bear flag, big bear bar, possible high of the day. Ok swing sell or short but big stop so trade small or wait
  • Bar 2 - Doji inside bar so weak follow through and might be bear leg in trading range
  • Bar 5 - Bull reversal bar but 3 big bear bodies, did not fall below moving average, trend from the first bar bear, and bottom of wedge channel just below so should go at least a little lower. Sellers above. Ok swing buy or long but lp
  • Bar 8 - Two legged pullback in a bull move at moving average and close of yesterday and bottom of channel, but doji and not enough buying pressure. Wait
  • Bar 9 - Outside down bar breakout
  • Bar 10 - Microwedge but doji. Wait
  • Bar 11 - Big bear bar breakout below microwedge but no consecutive strong bear bars so probably bear leg in trading range. Possible exhaustion gap. Double bottom 74
  • Bar 12 - Bull inside bar, fail, failure breakout, exhaustion gap, but tight channel so hard to manage buy or long and better to wait. Trading range most likely. Look to sell or short around moving average
  • Bar 14 - Bear inside bar, close on low, double top 10. Might be ok scalp sell or short. Do not buy or long below since strong bear bar in bear
  • Bar 16 - Big bull trading range but tight trading range and big bar so lp buy or long better to wait
  • Bar 18 - Bear two inside bars, but bottom of yesterday trading range so lp. Might be buyers below. Swing sell or short only but better to wait
  • [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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