E-mini S&P range-bound after near double-top

Brooks Price Action - 01-14-2013 Monday

pending chart 1778

Double top lower high major trend reversal, double bottom higher low major trend reversal, trading range day and reversal day

  • Monday, January 14, 2013
  • Bar 1 - Yesterday ended with weak bull channel and double top. Also, daily double top with sept. Doji, sellers above
  • Bar 4 - Or test of moving average, 2 bear bars, always in short. Targets below. 2 week trading range and might be forming head of head and shoulders top
  • Bar 5 - Big bear bar, more down, but at support
  • Bar 6 - Bull inside bar so bad follow through so probably not strong bear trend day
  • Bar 9 - Always in short, ioii but doji and at support 60 minute 20 bar exponential moving average, low of yesterday, trendline. Better to wait or swing small with wide stop. Probably bear trend day, like spike and channel or trending trading range day. Less likely, sell vacuum test of 60 minute 20 bar exponential moving average and bottom of 4 day bull channel
  • Bar 12 - Bull reversal bar, two legged pullback in a bear move final flag 9, but 10 bar bear microchannel. Better to wait, but possible low of the day
  • Bar 15 - Big bull bar, 4 bar spike, more up. Big down, big up sideways likely
  • Bar 18 - Bull outside bar surrounded by inside bars but dojis at moving average so probably sellers above
  • Bar 22 - Bear inside bar, microwedge 15 19 21. Sellers above. 10 bar bull microchannel so better to wait for second entry sell since bulls will try for higher low major trend reversal below
  • Bar 27 - Breakout test or bought 12, higher low major trend reversal, but bear body and trading range pa so far. Swing only or wait for second entry buy or second entry sell
  • Bar 31 - Bears will sell or short market just below 21 high, betting on double top. Second entry sell 29, double top bear flag 21, ok swing but doji and trading range likely so lp sell or short on stop below. More sideways likely. Dominant feature so far today is bear spike to 12 low, and market probably still always in short, but big down, big up so sideways more likely, maybe for hours
  • [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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