E-mini price action trends lower, falls hard: Brooks

Brooks Price Action Analysis for Wednesday, March 26

pending chart 2725

End of quarter so bull bias. Also bulls are buying every strong sell off so probably will move to new all time high within 1-2 weeks to test weekly targets around 1900 (top of weekly channel, measured move target) for possible high of next several months. Then, should test 1700 within next few months. Reasonable area to consider buying put spreads here or around 1900 for 10% pullback.

  • Wednesday, March 26, 2014
  • Bar 1 - I leave at 10:30 today and all week. Gap up, doji, so 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. Top of channel so should test bottom
  • Bar 2 - Breakout pullback buy or long but another doji. Tight trading range. Still on 1 sell or short
  • Bar 3 - Fail, failure breakout high of yesterday second entry sell, ok swing sell or short for possible high of the day, but bull body, tight trading range so low probability. Probably always in short
  • Bar 6 - Outside bar surrounded by inside bars, breakout mode, two legged pullback in a bull move buy or long or fail, failure breakout high of yesterday sell or short. Better if strong sell below or sellers below or signal bar. Still on sell or short below 3
  • Bar 7 - Two legged pullback in a bull move but 3 consecutive bear bars so low probability and probably sell above or sellers at the high of the bar and probably scaling in higher
  • Bar 9 - 2 bull bars but small, tail, always in long. Bears will sell or short for channel down
  • Bar 11 - Breakout but doji so low probability
  • Bar 12 - Wedge 2 8, bull inside bar so fail, failure breakout, but doji so low probability, probably sell above or sellers at the high of the bar and probably scaling in higher and more channel down, but weak so probably trading range day
  • Bar 15 - Two legged pullback in a bear move but tight trading range at moving average and weak sell below or sellers below or signal bar and weak bear channel so swing or wait. Higher probability to wait
  • Bar 18 - Fail, failure breakout but 1t body so not strong buy or long. Might get measured move from low of the day to open of day, then test open of day after 11 am
  • Bar 19 - Outside up bar, weak bear channel, probably better for bears to take profits. Best bull bar of day so might be low of the day. Bulls need follow through if becoming 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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