E-mini S&P breaks out in bull reversal day

Brooks Price Action - 01-02-2013 Wednesday

pending chart 1742

Gap up, one bar final flag, trading range and then late breakout and bull reversal day

  • Wednesday, January 2, 2013
  • Bar 1 - Big gap up sotd more likely, and up more likely than down, but close to daily high of last year. Bull body but bar small compared to yesterday so lower probability. Most likely mostly sideways for about an hour until close to moving average. Swing buy or long but better to wait.
  • Bar 2 - Reversal bar but bull body so lp and swing sell or short or wait
  • Bar 3 - Strong bull bar, two legged pullback in a bull move 1, ok swing buy or long and maybe scalp
  • Bar 6 - Fail, failure breakout, one bar final flag, two legged pullback in a bear move just below high on daily. Ok swing sell or short for buy vacuum buy climax and possible high of the day. Tail so lower probability. If trading range day, this could be high of the day since new high
  • Bar 8 - One legged pullback in a bull move but 3 bear bars and probably sellers above
  • Bar 10 - Another bear breakout but close at 9 low so weak
  • Bar 15 - Fail, failure breakout but doji and tight channel so better to not buy or long, but weak bear channel so bears should exit about half of shorts from 6. Swing stop above 9 or 6
  • Bar 18 - Bull two inside bars but tight channel and 10 bar bear microchannel so better to wait for second entry buy
  • Bar 19 - Bear reversal bar, breakout pullback, targets below, but might be trading range day so maybe buyers below low of the day. Scalp or wait
  • Bar 23 - Doji inside bar, fail, failure new low of the day and possible trading range day. Ok buy or long for scalp but tight channel, targets below, and weak signal bar so better to wait
  • Bar 27 - Bull outside bar surrounded by inside bars, mdb23, ok scalp buy or long but targets 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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