S&P 500 E-mini gaps up into trend: Brooks

Brooks Price Action Analysis of Tuesday, July 8

pending chart 2204

Gap up, trend from the first bar bull, lower high major trend reversal, higher low major trend reversal, trading range day

  • Monday, July 8, 2013
  • Bar 1 - End of strong seasonal buy or long since june 26, so should test down this week. Bear reversal bar but small, 1t body. Lp sell or short. Wait
  • Bar 3 - Breakout pullback buy or long but only 2t body and after 2 bear bars. Better to wait. Lp buy or long
  • Bar 4 - Breakout but 4t tail so probably bull leg in trading range. Always in long
  • Bar 5 - Second entry sell fail, failure breakout above bull channel. Ok swing sell or short
  • Bar 6 - Breakout pullback buy or long but weak bull so low probability
  • Bar 8 - Second entry sell fail, failure breakout top of bull channel and high of yesterday. Ok swing sell or short but 3t tail so lp. Better to wait for bear breakout
  • Bar 10 - Double bottom 5, always in long, but tight trading range so lp. Better to wait
  • Bar 14 - Two legged pullback in a bull move but far from moving average. Tight trading range no scalping with stops.
  • Bar 17 - Lower high major trend reversal, bear bar, close on low. Swing sell or short below 14 but still lp since might form two legged pullback in a bull move buy or long soon
  • Bar 19 - Two bar revresal, two legged pullback in a bull move 9, but tight trading range no scalping with stops. Bears have stop above 15 or 17, bulls have stop below 18 or 3. Wait for breakout up and or down
  • Bar 21 - Double top lower high major trend reversal, two bar revresal, double top 15, lp so swing or wait. Should close gap above high of yesterday
  • [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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