E-mini S&P sees five-day head and shoulders top

Brooks Price Action - 01-08-2013 Tuesday

pending chart 1757

5 day head and shoulders top, expanding triangle bottom, higher-low major trend reversal

  • Tuesday, January 8, 2013
  • Bar 1 - Yesterday was trading range day. Doji so buyers below sellers above
  • Bar 3 - Fail, failure two legged pullback in a bull move, outside bar surrounded by inside bars but doji. Better to wait
  • Bar 4 - Close below 3 so breakout
  • Bar 5 - Bear body so follow through and more down. Neckline of 5 day head and shoulders top just below low of yesterday. Odds favor fail, failure breakout, but might be good and lead to measured move down
  • Bar 6 - Close on low, more down
  • Bar 9 - Breakout below head and shoulders top. Big bar so might be sell climax and exhaustion gap
  • Bar 10 - Expanding triangle yesterday 2 and 26, fail, failure breakout, but trend from the first bar bear so sellers above. Bulls should wait for second entry buy and all longs are scalps until major trend reversal
  • Bar 13 - One legged pullback in a bear move but tight trading range so better to scalp since might become final flag
  • Bar 15 - Strong bull reversal bar, final flag, but tight channel and always in short. Probably ok buy or long scalp but better to wait for major trend reversal buy or long
  • Bar 16 - Doji, breakout pullback sell or short but bottom of bear channel so lower probability. Better to wait since getting dojis since 10 and trying to form trading range
  • Bar 19 - Outside up bar but 18 not good buy or long. Wait
  • [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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