E-mini S&P falls after missing 2012 high

Brooks Price Action - 01-03-2013 Thursday

pending chart 1748

Spike and channel bull, wedge top just below high of last year

  • Thursday, January 3, 2013
  • Bar 1 - Yesterday ended with unusually big buy climax so should get pullback. Big bear bar, more down
  • Bar 2 - Bear follow through, but big up, big down so trading range likely. Might find support at moving average
  • Bar 3 - Doji after 2 strong bear bars so probably sellers above, especially since not quite down to moving average, but two legged pullback in a bull move 80 so might bounce. Better to wait, but ok swing. 77 78 might be spike that will be followed by channel up. Move down is strong enough selling pressure so might get major trend reversal on a test of 79 high. Resistance just above the high of yesterday = high of last yesterday. Most likely will soon begin to go sideways for week or two, like we did last year at this level
  • Bar 9 - Lower high major trend reversal but doji and 6 bars up and always in long so buyers below
  • Bar 11 - One legged pullback in a bull move, targets above, but weak rally and probably trading range after big up, big down so scalp or wait
  • Bar 13 - Lower high major trend reversal, two legged pullback in a bear move 9, but only one bear bar and support at 10 low so not high enough probability for scalp and not enough selling pressure for swing. Wait
  • Bar 18 - Possible triangle 10 14 above moving average. Tight trading range so lower probability but ok to buy or long for reward 2 times risk, maybe 2 points
  • Bar 22 - Bull inside bar, breakout pullback buy or long, but not strong rally so lower probability. Ok swing but might get pullback so scalp is hard to manage. Targets above, blue line = high of last year
  • Bar 26 - Fail, failure breakout high of yesterday but 10 bar bull microchannel and targets above. Buyers below. Don't sell or short. Still probably trading range but better to wait for second entry sell
  • Bar 30 - Possible triangle 24 27 and targets 6t above, but might not be enough profit for the lower probability of a tight trading range. Probably better to wait to buy or long after test of moving average since 3 and 18 came to within 2t of moving average and pullbacks usually get bigger
  • Bar 36 - Bear two inside bars, second entry sell high of yesterday, leg 1 equals leg 2 measured move measured move, l4, top of trading range, wedge yesterday 178. Ok sell or short for approx. Ten bar, two-legged correction sideways to down. Should test middle or bottom of 18 possible triangle. Trending trading range day so far
  • [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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