E-mini S&P falls as sellers take control

Brooks Price Action - 12-26-2012 Wednesday

pending chart 1724

Fail, failure breakout high of yesterday, final flag bottom, l4 channel

  • Wednesday, December 26, 2012
  • Bar 1 - Yesterday = tight trading range. Christmas week usually has small days so breakout with follow through = lp
  • Bar 2 - Bull inside bar. Wait. Tight trading range
  • Bar 4 - Bull outside bar surrounded by inside bars but at high of yesterday and yesterday = tight trading range. Wait. Most breakout fail, failure
  • Bar 8 - Two inside bars, fail, failure two legged pullback in a bull move, magnet below. Tight trading range so lp and swing only, but swing unlikely= lp
  • Bar 12 - Bull reversal bar, fail, failure breakout but always in short and probably sellers above and buyers below. Better to wait for second entry buy
  • Bar 14 - Another breakout. Should test low of yesterday and maybe go outside down bar
  • Bar 15 - Bull inside bar, fail, failure breakout but tight channel. Need second entry to buy or long. Lp sell or short since bottom of yesterday = trading range day so swing only or wait
  • Bar 18 - Breakout, close on low, probably more down
  • Bar 19 - Close near low but 2 bar breakout so sell climax. 14 bar bear microchannel so too early to buy or long, but might enter trading range soon
  • Bar 20 - Close near low, more down, but big sell climax so better to sell or short rallies or wait for second entry buy scalp. Probably trending trading range day
  • Bar 21 - Bull reversal bar so should start to form lower trading range soon. Probably sellers above, then start trading range
  • [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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