E-mini S&P declines amid broad bear channel

Brooks Price Action - 11-08-2012 Thursday

pending chart 1609

Spike and channel bottom from yesterday 78 bear spike. Broad channel bear

  • Thursday, November 8, 2012
  • Bar 1 - Yesterday had consecutive sell climax then big rally. Late selloff so possible higher low major trend reversal. Too many bear bars to 81 so not strong signal bar. 1 has open on low and big body so probably more up
  • Bar 2 - Strong follow through so more up
  • Bar 3 - Smaller body and tail, and now near top of trading range so buy or long pullback. Trend from the first bar bull so buyers below
  • Bar 4 - Trend from the first bar so buyers below, probably near moving average. Trading range for 60 bars so might be or high of the day but lp. Always have to look to the left and not just at past few bars. Trading range so might be another failed breakout attempt
  • Bar 5 - Strong bear bar so don't buy or long yet.
  • Bar 6 - Bear follow through so wait.
  • Bar 8 - Bear breakout so probably more down
  • Bar 9 - Bull inside bar but 4 bars down so sellers above
  • Bar 12 - Two legged pullback in a bull move 9, strong bull bar, double bottom 81, higher low major trend reversal. Ok swing buy or long but tight channel so lp. Maybe swing and maybe part scalp. Best = wait
  • Bar 14 - Double top 10 but doji and 3 bars up so probably buyers below. Wait
  • Bar 16 - Breakout pullback sell or short but 4 profit target bounce and bull body. Wait. Big sideways bars so better to wait to see if get small bull bar near bottom of tight trading range to buy or long, or small bear bar near top to sell or short
  • [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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