Breaking down Monday's E-mini S&P 500 price action: Brooks

Brooks Price Action Analysis of Monday, Nov. 18

pending chart 2413

Fail, failure breakout top of channel, wedge opening reversal bottom, lower high major trend reversal, two legged pullback in a bull move, double top, consecutive sell climax and parabolic wedge

  • Monday, November 18, 2013
  • Bar 1 - Yesterday ended with weak bull channel with 3 pushes over 3 days. Top of channel on daily so good location for puts. Gap above channel so odds favor reversal soon. Tails so buyers at the low of week of the bar and probably scaling in lower sellers at the high of the bar and probably scaling in higher
  • Bar 2 - Fail, failure breakout but bull body. Sellers at the high of the bar and probably scaling in higher 1 so probably sellers below or signal bar 2. Ok to wait for bear breakout. Missed 1800 by 1 today/tick
  • Bar 3 - Opening reversal, two legged pullback in a bull move 1, but doji, strong bear bar. Low probability buy or long. Probably sellers at the high of the bar and probably scaling in higher and sellers below or signal bar, always in short. Take at least half off at 2 points
  • Bar 4 - Doji so bad follow through and possible trading range soon. Sellers at the high of the bar and probably scaling in higher for measured move down
  • Bar 5 - Fail, failure two legged pullback in a bull move, breakout pullback sell or short, more down. Yesterday = small day so might go outside down bar today
  • Bar 7 - Opening reversal wedge 1 4, weak follow through again after bear breakout so probably bear leg in trading range instead of strong bear. Low probability buy or long but sideways likely
  • Bar 8 - Wedge opening reversal bottom, strong bull bar. Probably still always in short but ok swing buy or long above. Better to wait since trading range likely. Buy low of week sell high and scalp
  • Bar 11 - Double top 5 but strong 8 10, above moving average, so not high enough probability for scalp. Ok swing but better to wait. Might get two legs up
  • Bar 14 - Lower high major trend reversal second entry sell, but tight trading range no scalping with stops and low probability so swing or wait. Probably buyers at the low of week of the bar and probably scaling in lower for test 5 high.
  • Bar 17 - Breakout but small bars. Ok to wait
  • Bar 19 - Another breakout. Need follow through but probably always in long, stop below 16. Ok to wait to buy or long pullback since weak rally
  • [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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