E-mini S&P falls amid selling climax

Brooks Price Action - 11-07-2012 Wednesday

pending chart 1608

Consecutive sell climax

  • Wednesday, November 7, 2012
  • Bar 1 - Big gap down, big bear bar, possible high of the day, ok swing sell or short, but ok to wait. Always in short
  • Bar 2 - Bear body so more down and sellers above, even tho reversal bar and possible low of the day.
  • Bar 3 - Breakout pullback sell or short but bull doji so sideways more likely. Wait
  • Bar 5 - Bear inside bar, outside bar surrounded by inside bars, ok swing sell or short, but might continue sideways
  • Bar 6 - Bear breakout. Tail, but always in short so ok swing sell or short
  • Bar 8 - Microwedge and reversal bar, but doji, always in short, 4 bars down so better to not buy or long
  • Bar 10 - Another sell climax, just above support, but 6 bar bear microchannel so don't look to buy or long
  • Bar 12 - Bull inside bar, final flag 5, but no buying pressure and strong selling pressure so wait
  • Bar 15 - Micro double top 13 but one legged pullback in a bear move after consecutive sell climax so have to be fast in decisions if take sell or short
  • Bar 19 - Bull inside bar, wedge 2, 11, consecutive sell climax, possible low of the day, but support just below and tight channel so better to not buy or long. If becomes low of the day, wait for higher probability buy or long. 3 big bear bar sell climax so bulls will begin to look to buy or long with stop below measured move down, based on open 16 to close 18. Don't buy or long yet since important support just below. Pink line = bottom of aug tight trading range and blue line = trend channel line for possible 60 minimum or minutes expanding triangle bottom
  • Bar 26 - Two bar revresal just below key support (pink line =bottom of aug tight trading range, blue line = possible bottom of 60 minimum or minutes expanding triangle bottom), exactly at measured move 17 gap and leg 1 equals leg 2 measureed move for spike and channel bear where spike is 81 high to 2 low. 50% chance low of the day. Probably approx. Ten bar, two-legged correction sideways to up so probably always in long, but bulls need more proof before agreement. Targets = top of channel, 18 low, 19 and 20 high and moving average, but in strong bear day, might not hit moving average. Odds favor tight trading range until around 11:30, then bears will try for trend resumption and bulls will want reversal day
  • [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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