Price action slides, then recovers, in E-mini S&P 500

Brooks Price Action Analysis for Tuesday, Jan. 21

pending chart 2555

Fail, failure breakout high of yesterday, fail, failure breakout low of yesterday second entry buy and lower low major trend reversal, higher low major trend reversal, final flag top

  • Tuesday, January 21, 2014
  • Bar 1 - Gap up, bull bar, breakout, target above, possible low of the day so ok swing, but breakout of top of 3 week trading range so low probability buy or long. Bull bar so low probability sell or short. Big gap, good context for bulls, so possible early low of the day. Any early selloff could be opening reversal low of the day at moving average
  • Bar 2 - Bear inside bar, close on low, ok swing but small bars and possible tight trading range so not high enough probability unless swing stop and scale in for scalp
  • Bar 3 - Breakout pullback buy or long but 2 bear bars, on fail, failure breakout sell or short, always in short, so probably sellers at the high of the bar and probably scaling in higher
  • Bar 5 - Fail, failure breakout high of yesterday second entry sell, ok swing but tight trading range, bad for scalping with stop entries unless using swing stop. Still always in short
  • Bar 7 - Two legged pullback in a bull move but 5 bear bars, always in short. Breakout mode but always in short, so be ready for bear breakout
  • Bar 9 - Big bear breakout, more down. Ok to sell or short market or sell the close
  • Bar 10 - Big tail, test of moving average and 60 minute 20 bar exponential moving average, but should get two legs down after strong breakout and breakout mode
  • Bar 12 - Breakout pullback sell or short, target close of yesterday pnly five tick failure below so possible trap and buyers at the low of the bar and probably scaling in lower. Only sell or short or buy or long if wide stop and scale in , so trading range likely soon
  • Bar 14 - Wedge 3 11, opening reversal at 60 minute 20 bar exponential moving average, bull inside bar, possible low of the day so ok swing with wide stop and scale in . Higher probability for bulls to wait for breakout. Always in short but better to be flat and wait
  • Bar 15 - Double top 12 but low probability so swing or wait. Probably will not fall below low of yesterday and form outside down bar day so probably bottom soon
  • Bar 17 - Wedge 3 11 13, possible triangle 11 13, but tail. Swing buy or long with stop below low of yesterday, but still always in short. Better to wait for bull breakout or final flag reversal from bear breakout. Still always in short, stop above 9 or 10. Tight trading range so sellers at the high of the bar and probably scaling in higher
  • [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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