Friday E-mini S&P 500 price action drifts sideways: Brooks

Brooks Price Action Analysis for Friday, March 7

pending chart 2676

Fail, failure breakout high of yesterday, double bottom low of yesterday, two legged pullback in a bull move, wedge lower high, higher low major trend reversal. Top of weekly channel and several measured move targets around 1895, so that might be the high of the next several months for a test below bottom of expanding triangle, around 1700. Might get there next week.

  • Friday, March 7, 2014
  • Bar 1 - Fail, failure breakout high of yesterday, big bear bar, possible outside down bar day or move below high of last week 1866.50. Bulls want opening reversal at moving average
  • Bar 2 - Opening reversal near moving average, breakout pullback sell or short. Bars up bars down bars up, probably buy below or buyers at the low of the bar and probably scaling in lower sell above or sellers at the high of the bar and probably scaling in higher, better to wait
  • Bar 3 - Breakout pullback sell or short, strong reversal bar, ok swing for test below low of yesterday and 60 minute 20 bar exponential moving average, but more likely more sideways
  • Bar 4 - Big bear bar, close on low, more down. Bears want outside down bar day, bulls want double bottom low of yesterday and channel up to new high of the day
  • Bar 5 - Double bottom low of yesterday, bull reversal bar, two legged pullback in a bull move. Still always in short but now sideways more likely. Ok swing buy or long
  • Bar 6 - Two legged pullback in a bull move, double bottom low of yesterday, ok swing buy or long. Breakout pullback sell or short but two bar revresal just above low of yesterday so low probability sell or short and probably buy below or buyers at the low of the bar and probably scaling in lower for test 1 low, 4 high. Buy low sell high and scalp
  • Bar 9 - 2 bull bars, probably always in long, stop below 7, but possible trading range day since still below 3 high. Trade small, possible scale in
  • Bar 10 - Double top 3 but low probability and more likely buy below or buyers at the low of the bar and probably scaling in lower, but need scale in and stop below 7 so trade small or wait to buy or long low. Bulls want channel up after 7 � 9 spike, bears want breakout below low of the day and measured move down from double top 3 10. Always in long
  • Bar 12 - Breakout pullback buy or long but 3 dojis at moving average, middle of trading range day. Probably tight trading range, limit order market, bulls scaling in below and bears above. Ok swing buy or long but need wide stop, might test below 8
  • Bar 17 - Follow through from 16 breakout, but trading range day so probably buy below or buyers at the low of the bar and probably scaling in lower. Bulls need stop below 7, bear stop above 10. Trading range day
  • Bar 18 - 3rd consecutive bear bar with close on low. Bulls will buy or long with stop below low of the day, but ok swing sell or short or can wait for breakout below low 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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