E-mini S&P gap down may be beginning of correction

Brooks Price Action - 04-05-2013 Friday

pending chart 1988

Big gap down, double bottom, higher low major trend reversal, fail, failure wedge, close of gap

  • Friday, April 5, 2013
  • Bar 1 - Big gap down, island top on daily. Possible start of 2 - 3 month correction. Reversal bar but bear body. Far from moving average so probably will not fall much until closer to moving average so might get bounce. Bottom of 60 minimum or minutes trading range so might rally
  • Bar 2 - Strong bull bar, probably more up, but odds favor close of day below open of day. Limited upside
  • Bar 4 - One bar final flag but bull body. Probably will not fall far until test of micro. Swing sell or short or wait
  • Bar 6 - Consecutive bear bar so possible always in short, but bears need to get below 1 bottom of bull spike. Bulls have stops there
  • Bar 7 - Bull reversal bar, bottom of trading range. Sideways most likely. Lp buy or long so swing or wait. Held above low of the day so still on buy or long 2c and above 1 9 breakout pullback sell or short but tail. Swing only, but still on swing buy or long so breakout mode. Probably always in short although odds favor close below open of day.
  • Bar 10 - Possible triangle 1 7, but bear body. Held above 7 low, higher lows. Breakout mode and probably trending trading range day up and or down
  • Bar 12 - 2 more consecutive bull bars. Good buying pressure so bulls might get breakout. Possible spike and channel bull, 2 spike
  • Bar 13 - Bear reversal bar but not big compared to 11 12. Two legged pullback in a bear move 9, two legged pullback in a bear move 4. Swing only, but still always in long, probably buyers below or buy below
  • Bar 16 - Two legged pullback in a bull move 14, breakout pullback buy or long. Ok swing, but bulls need breakout above moving average, else possible wedge bear flag and high of the day
  • Bar 18 - Bear reversal bar, wedge 4 13, moving average, but always in long, 1t body, 2 stronger bull bars. Probably buyers below or buy below. Should go up to measured move target, possible low of yesterday
  • Bar 22 - Moving average gap bar, bear inside bar, 17t f16, but 9 bar bull microchannel, always in long, target above. Lp sell or short so swing, but better to buy or long pullback. Bulls not getting 3 or more consecutive bars, no big bull breakout. Probably bull leg in trading range day instead of strong bull trend. 1t above measured move from 2 close and actual risk below 7 low, spike and channel bull, spikes 2, 11 12, and 16 17. Channel should become trading range
  • [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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