E-mini S&P 500 opens week with gap higher: Brooks

Brooks Price Action Analysis for Monday, March 17

pending chart 2695

Rally to middle of last week�s bear breakout. Probably more sideways tomorrow. Might test below last week�s low this week, but odds favor one more new all time high and then down for months. In the sell zone on weekly chart so ok to consider buying put spreads, but a little more up possible since targets around 1888 for possible high of next several months. Should test 1700 in next few months.

  • Monday, March 17, 2014
  • Bar 1 - Big gap up, 3t tail at 60 minute 20 bar exponential moving average, possible low of the day. Swing or wait
  • Bar 2 - Big bull bar, close on high, always in long
  • Bar 3 - Follow through but 2 buy climax so probably pullback soon. Only buy or long if wide stop and scale in, swing of scalp
  • Bar 4 - Doji inside bar after buy climax. Sell above or sellers at the high of the bar and probably scaling in higher for scalp, buy below or buyers at the low of the bar and probably scaling in lower
  • Bar 8 - Final flag but doji. Ok swing but trading range more likely. Possible scalp but lower probability since doji.
  • Bar 11 - Breakout pullback buy or long but 2 dojis, room to 7 low and moving average so not high enough probability unless swing stop and scale in for scalp. Possible sell above or sellers at the high of the bar and probably scaling in higher. Still always in long
  • Bar 12 - Outside down bar bear breakout, probably measuring gap
  • Bar 14 - Two legged pullback in a bull move but 7 bars without bull body, moving average just below so sell above or sellers at the high of the bar and probably scaling in higher
  • Bar 16 - Parabolic wedge 9 12 at moving average, probably trading range so buy above or buyers above but trading range likely
  • Bar 17 - Double top 15 but parabolic wedge so two legs up and buy below or buyers at the low of the bar and probably scaling in lower. Tight trading range
  • Bar 18 - Moving average second entry buy but 2 dojis. Pron tight trading range. Still always in long
  • [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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