E-mini S&P overcomes pullback to maintain bull

Brooks Price Action - 05-08-2013 Wednesday

pending chart 2056

Trend from the first bar, small pullback bull, double top major trend reversal, big two legged pullback in a bull move

  • Wednesday, May 8, 2013
  • Bar 1 - Yesterday ended with higher high major trend reversal. Bear reversal bar but small body, 15 minute 20 bar moving average plotted on a 5 minute chart. Lp sell or short. Wait. Top of weekly channel around 1640, daily trend channel line 1621. Probably fail, failure bull breakout and top for next couple of months and test of bottom of channels. Need second entry sell
  • Bar 2 - Bull reversal bar, or 15 minute 20 bar moving average plotted on a 5 minute chart, but 1t body. Ok to wait
  • Bar 3 - Strong bull body, consecutive bull bodies. Probably always in long. Test high of yesterday, ok to wait
  • Bar 6 - Bull follow through, more up
  • Bar 7 - Expanding triangle 53 66 but 6 bars up so buyers below or buy below. Bears need second entry sell high of yesterday
  • Bar 11 - Bull inside bar after second entry sell expanding triangle bear reversal bar so lack of urgency in tight channel and better to not sell or short. Ok swing buy or long
  • Bar 14 - 4 consecutive bull bars so more up, but small bars so probably eventual trading range
  • Bar 17 - Final flag 11 but 7 bars up, doji signal bar so buyers below or buy below, sideways more likely. Better to wait to sell or short, or use wide stop. Still always in long
  • Bar 19 - Bull inside bar, always in long, tight channel, more up, but might go sideways at any time. Ok buy or long with swing stop below 8
  • Bar 26 - Second entry sell but bull bar, small pullback bull, smallest pullback 6t since 2. Buyers below or buy below. Either buy or long for any reason or wait. Nesp to sell or short
  • Bar 33 - Bear reversal bar, final flag 28 tight trading range, but biggest pullback 6t since 2 so probably buyers below or buy below, especially at moving average and 29 low. Better to wait to sell or short or use wide stop and scale in higher. Always in long so ok to buy or long for any reason with swing stop below 8 or 2t below 18, but probably not much upside left before trading range and test down to 18 and maybe 8 low
  • [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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