E-mini S&P rises after big gap down

Brooks Price Action - 03-18-2013 Monday

pending chart 1950

Gap down, trend from the first bar bull, higher high major trend reversal

  • Monday, March 18, 2013
  • Bar 1 - Big gap down, far from moving average so probably cannot go down much more without pullback. Reversal bar but bear body. Bulls will be eager to buy or long this bigger pullback since they have been buying tiny pullbacks for weeks. Target = low of yesterday = blue line
  • Bar 2 - Big bull bar, close on high, always in long
  • Bar 3 - Bull follow through, buyers below or buy below. 50% chance 1 = low of the day. Good context, strong 2
  • Bar 4 - Outside up bar, magnet = low of yesterday = top of gap. Daily= bull so buyers below or buy below low of yesterday
  • Bar 8 - Two bar revresal but tight channel, always in long. Buyers below or buy below and maybe ba
  • Bar 10 - Two legged pullback in a bear move but doji and tight channel. Probably buyers below or buy below. Don't sell or short since tight channel and nesp
  • Bar 11 - Breakout pullback buy or long but top of channel, bear bar, at moving average so swing buy or long or wait
  • Bar 14 - Moving average, wedge 3 10 and 7 10, but bull body and tight channel. Wait. Magnet = low of yesterday, 60 minute 20 bar exponential moving average
  • Bar 15 - Another breakout pullback buy or long but bear bar at moving average. Sideways more likely. Wait
  • Bar 17 - Second entry sell at moving average but tight channel. Sideways more likely. Wait
  • Bar 19 - Two legged pullback in a bull move at moving average, always in long, target above. Ok swing buy or long, but tight trading range so not high enough probability for scalp unless wide stop
  • [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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