S&P 500 price action on Wednesday stuck in tight range: Brooks

Brooks Price Action Analysis of Wednesday, Nov. 6

pending chart 2395

Trend from the first bar bull, two inside bars final flag top, 60 minimum or minutes opening reversal and wedge bottom, tight trading range

  • Wednesday, November 6, 2013
  • Bar 1 - Breakout above 3 day double top but bear body. 2t tail so lower probability sell or short so swing or wait
  • Bar 3 - Two inside bars, breakout mode
  • Bar 4 - Big bull bar, always in long, more up
  • Bar 5 - Follow through but tail. All time high = pink line just above
  • Bar 6 - Two inside bars final flag, but 1t bear body and strong breakout so probably buyers at the low of week of the bar and probably scaling in lower. Possible high of the day so ok swing sell or short but sideways more likely
  • Bar 9 - Fail, failure breakout, second entry sell, but tight trading range no scalping with stops. Ok swing but higher probability to wait. Still always in long but many bulls would exit below and look to buy or long back if resumes up
  • Bar 10 - Ok entry bar
  • Bar 11 - Small follow through
  • Bar 12 - Big bear bar, close below 11 so bear breakout, always in short
  • Bar 13 - Follow through but tail. Possible low of the day, double bottom 1, and test of gap above high of yesterday. Bears need breakout below 1 and high of yesterday
  • Bar 14 - Breakout pullback sell or short but at low of the day and 15 minute 20 bar moving average plotted on a 5 minute chart so low probability and sideways more likelu
  • [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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