Trends and reversals highlight Monday S&P 500 price action

Brooks Price Action Analysis of Monday, Nov. 4

pending chart 2393

Trend from the first bar bear, lower high major trend reversal, two legged pullback in a bull move, two legged pullback in a bear move top

  • Monday, November 4, 2013
  • Bar 2 - Close on low. Ok swing sell or short below
  • Bar 3 - Weak follow through but always in short, sellers at the high of the bar and probably scaling in higher and probably sellers below or signal bar
  • Bar 7 - Breakout pullback sell or short but micro double bottom at micro. Probably buyers at the low of week of the bar and probably scaling in lower then tight trading range. Trading range pa, no consecutive big bear bars
  • Bar 11 - Opening reversal at moving average, two inside bars, but 11 bars down so probably sellers at the high of the bar and probably scaling in higher and trading range
  • Bar 15 - Breakout pullback buy or long but test high of yesterday and probably top of trading range. Probably sellers at the high of the bar and probably scaling in higher
  • Bar 16 - Lower high major trend reversal but only 1 bear bar in 8 bars so low probability. Trading range still more likely. Too high to buy or long below. 2t below 2 low so possible breakout test or bought sell or short
  • Bar 17 - Big bear bar, close on low, probably will test bottom of channel
  • Bar 18 - Follow through but just above 15 minute 20 bar moving average plotted on a 5 minute chart and 60 minute 20 bar exponential moving average. Sideways likely, but probably always in short. Possible measuring gap
  • Bar 19 - Two legged pullback in a bull move 10 at 60 minute 20 bar exponential moving average but weak sellers below or signal bar so probably sellers at the high of the bar and probably scaling in higher and tight trading range below moving average, then breakout up and or down
  • Bar 24 - Three legged pullback in a bear move but tight trading range no scalping with stops and at 60 minute 20 bar exponential moving average and 15 minute 20 bar moving average plotted on a 5 minute chart. Always in short, but wait for breakout up and or down
  • Bar 27 - Three legged pullback in a bear move but 7 bars up and follow through from 26 breakout. Might be always in long. Building buying pressure, like up to 16 so might get bull breakout of bear flag, then test 16 high
  • [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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