Price action carries S&P 500 index higher: Brooks

Brooks Price Action Analysis of Tuesday, Oct. 29

pending chart 2387

Higher high major trend reversal, lower high major trend reversal, double bottom, possible triangle, trend resumption

  • Tuesday, October 29, 2013
  • Bar 1 - Gap above top of 4 day bull channel so probably will fail, failure soon and test bottom of channel. Ok buy or long above for trend from the first bar bull but low probability and better to wait that to buy or long at resistance and hope for breakout
  • Bar 2 - Higher high major trend reversal, but tight channel 76 so sideways more likely
  • Bar 3 - Two legged pullback in a bull move, always in long, but doji, tight trading range so low probability and probably sellers at the high of the bar and probably scaling in higher for test below 2
  • Bar 5 - Fail, failure breakout top of channel, second entry sell, micro double top, but big tail, tight trading range, still above high of yesterday, so low probability. Ok swing sell or short for possible high of the day, but higher probability to wait. Always in short but need follow through, else possible or buy or long soon
  • Bar 7 - Outside down bar but doji, at moving average. Always in short but low probability
  • Bar 8 - H4 at moving average, opening reversal, but 4 bars down. Low probability, always in short, better to wait
  • Bar 13 - Breakout but tail, double top 5. Swing bears still sell or short from 2, stop above 2 or 5. Ok swing buy or long, stop below 12. Best wait
  • Bar 14 - Lower high major trend reversal, swing only or wait since middle of trading range, just above moving average. Target = bottom of channel
  • Bar 19 - Double bottom at moving average, two bar revresal, 9t fail, failure, ok swing buy or long but better to wait for second entry buy. On swing buy or long and sell or short so breakout mode, possible possible triangle
  • Bar 24 - Possible triangle 2 13, but 5 bars up so low probability sell or short. Stop for bulls below 18, for bears above 13. Possible triangle so low probability for both
  • Bar 28 - Possible triangle, second entry buy at moving average. Should get breakout and then trending trading range day. Ok swing buy or long, or wait for breakout
  • [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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