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

Price action and setup analysis

pending chart 2426

Opening reversal, lower low major trend reversal, fail, failure breakout high of the day, final flag bottom, possible triangle bear flag. Triggered daily wedge sell or short signal

  • Monday, December 2, 2013
  • Bar 1 - Yesterday ended with strong selloff to 60 minute 20 bar exponential moving average. Wedge sell or short sellers below or signal bar on daily. Breakout pullback sell or short but 1t body, sellers at the high of the bar and probably scaling in higher and buyers at the low of week of the bar and probably scaling in lower low of yesterday
  • Bar 2 - Opening reversal at moving average, micro double top, ok swing sell or short for test below low of yesterday, but not strong scalp since dojis
  • Bar 3 - Big bear bar, close on low, more down to low of yesterday. Always in short
  • Bar 5 - Lower low major trend reversal but doji, 2 big bear bars so low probability. Ok to exit shorts, better to wait to buy or long until after reports
  • Bar 6 - Two inside bars but dojis 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, possible tight trading range at bottom of 5 day trading range. Good location on daily chart for put spreads
  • Bar 7 - Lower low major trend reversal, outside up bar but tight trading range, bad for scalping with stop entries unless using swing stop. Better to wait for strong bull breakout to buy or long
  • Bar 8 - Two legged pullback in a bear move but tight trading range, bad for scalping with stop entries unless using swing stop. On swing sell or short with stop above 3 and on swing buy or long with stop below 7. Still always in short
  • Bar 9 - Double bottom pullback but tight trading range, bad for scalping with stop entries unless using swing stop. Bulls want channel up and will buyers at the low of week of the bar and probably scaling in lower, bears want channel down and will sellers at the high of the bar and probably scaling in higher
  • Bar 12 - Wedge 5 8, but tight trading range, bad for scalping with stop entries unless using swing stop. Breakout mode, possible trending trading range day ud�14 breakout pullback buy or long but top of trading range and at mas. Better to wait
  • Bar 17 - Outside up bar, micro double bottom, but tight trading range, bad for scalping with stop entries unless using swing stop. Ok swing buy or long but higher probability to wait for breakout up and or down
  • Bar 19 - Follow through from 18 breakout. Probably always in long, targets 3 high, high of the day
  • [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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