E-mini S&P makes wedge bottom before ending at 5-year high

Brooks Price Action - 01-10-2013 Thursday

pending chart 1769

Wedge bottom, small pullback bull, new 5 year high

  • Thursday, January 10, 2013
  • Bar 1 - Yesterday was another tight trading range. Gap up to 5 year high but bear body. Doji so buyers below sellers above
  • Bar 3 - 3 bear bars so always in short and sellers above but dojis so tight trading range
  • Bar 5 - Bull outside bar surrounded by inside bars but tight trading range trumps all reasons to enter on stops. Lp so swing only. Better to wait
  • Bar 9 - Double top 1, small wedge 4 6, but tight trading range and doji. Should get breakout up and or down. Better to wait
  • Bar 13 - Breakout, possible measuring gap and trending trading range day, more down, ok to sell or short market and close. Tail so not strong and trending trading range day more likely than bear trend
  • Bar 14 - Bear body so follow through and more down and sellers above, but tails so weak breakout and sideways likely
  • Bar 16 - Second entry buy two legged pullback in a bull move 5 just below moving average, but tight trading range, bear bodies, and probably sellers above. Better to wait. Should get 2nd leg down after breakout. Target = close of yesterday and 60 minute 20 bar exponential moving average
  • Bar 17 - Two legged pullback in a bear move, targets below, always in short, but tight trading range so lower probability sell or short
  • Bar 19 - Final flag but tail and not enough buying pressure. Wait
  • Bar 20 - Breakout pullback sell or short but bottom of lower trading range so lower probability sell or short. Scalp only or wait to buy or long fail, failure breakout
  • Bar 22 - Bull reversal bar, wedge 14 19, ok buy or long for swing and maybe scalp, but 60 minimum or minutes moving average magnet below. Possible low of the day
  • [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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