Thursday price action carries E-mini S&P 500 lower: Brooks

Brooks Price Action Analysis for Thursday, Jan. 2

pending chart 2496

Gap down, fail, failure breakout low of yesterday, possible triangle at moving average, double bottom major trend reversal, moving average gap bar sell or short, lower low major trend reversal

  • Thursday, January 2, 2014
  • Bar 1 - Gap down, bear bar, but tail. Probably 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, better to wait since bears trapped out by strong bull close yesterday so possible high of the day
  • Bar 2 - Big bear bar, more down, but bottom of 5 day trading range
  • Bar 3 - Opening reversal, bull reversal bar, trading range bottom, but only 2t body, always in short, so probably sellers at the high of the bar and probably scaling in higher, stop above 2. Weak follow through for bears so possible trading range
  • Bar 4 - Breakout pullback sell or short but 2 bull bars so probably buyers at the low of week of the bar and probably scaling in lower and sideways to up. Possible low of the day, ok swing buy or long
  • Bar 6 - Two legged pullback in a bear move, close on low, bulls will exit. Ok swing and possible scalp sell or short
  • Bar 8 - Fail, failure breakout low of yesterday second entry buy, tail 7, bad bear follow through 3 8, so trading range more likely than bear trend. Ok swing buy or long for possible low of the day and possible scalp.
  • Bar 10 - Double top 5 but lots of bull bars and tails so low probability and swing only. More likely 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 and more trading range
  • Bar 12 - 60 minimum or minutes 1st close below 60 minute 20 bar exponential moving average in strong bull so bear breakout should fail, failure. 60 minimum or minutes buy or long the close
  • Bar 16 - Two legged pullback in a bear move moving average, double top 5, fail, failure breakout, but middle of tight trading range so low probability sell or short. Swing stop for bulls below 7 or 8, swing stop for bear above 6. More sideways likely. Might have to test below 8 where some bulls will have stops to see if breakout or fail, failure breakout
  • Bar 20 - Lower high major trend reversal double bottom, two bar revresal, but just below moving average, middle of tight trading range, low probability.
  • Bar 23 - Possible triangle at moving average 5 15, but tight trading range so swing. Higher probability to wait for breakout up and or down. Scalpers are selling with limit order orders at moving average. Possible final flag
  • [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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