E-mini S&P reverses lower after double top

Brooks Price Action - 05-21-2013 Tuesday

pending chart 2090

Double top high of yesterday, double bottom low of yesterday, higher low major trend reversal, wedge top, lower high major trend reversal

  • Tuesday, May 21, 2013
  • Bar 1 - Yesterday ended with 1st leg down from 2 day wedge so should get 2nd leg down. 14 days without pullback and yesterday = pause so should trade below low of the day. Big bull bar but probably test high of yesterday, then high of the day. Market at resistance on daily and might soon correct
  • Bar 2 - Bear bar but doji. Ok swing sell or short but might need second entry sell
  • Bar 6 - Double top high of yesterday second entry sell but tight channel. Ok swing for possible high of the day
  • Bar 8 - Breakout. Should go below low of yesterday. Ok swing sell or short. Always in short
  • Bar 9 - Follow through, more down
  • Bar 10 - Bull reversal bar but should get below low of yesterday. Don�t buy or long. Swing stop above 8 or 9
  • Bar 12 - Parabolic wedge 1 10, 1t fail, failure breakout low of yesterday but tail above. Possible low of the day but trendline below. Don�t buy or long. Ok to exit shorts
  • Bar 13 - Bear inside bar but doji and at support low of yesterday, trendline, and 60 minute 20 bar exponential moving average. 2nd trendline below. Lp sell or short after consecutive sell climax sell vacuum test support. Better to wait
  • Bar 14 - Strong bull reversal bar, micro double bottom 60 minute 20 bar exponential moving average and low of yesterday, probably approx. Ten bar, two-legged correction sideways to up and trading range. Better to wait for second entry buy
  • Bar 15 - Bear outside bar surrounded by inside bars, trendline target below, but might be buyers below or buy below since buying pressure at support. Difficult to manage sell or short. Better to wait.
  • Bar 16 - Double bottom low of yesterday, big two legged pullback in a bull move, bull reversal bar, second entry buy at support. Trading range likely. Ok swing buy or long or swing and maybe part scalp, eps if wide stop, but difficult since tight trading range and trading range likely. Higher probability to wait for major trend reversal. If get bear breakout to trendline below, probably final flag
  • [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.

Originally published on BPA Forums. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome